Applied Micro Circuits (NASDAQ: AMCC) and Semiconductor Manufacturing International Corporation (NYSE:SMI) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, dividends and risk.

Risk and Volatility

Applied Micro Circuits has a beta of 1.81, indicating that its stock price is 81% more volatile than the S&P 500. Comparatively, Semiconductor Manufacturing International Corporation has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500.

Profitability

This table compares Applied Micro Circuits and Semiconductor Manufacturing International Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Applied Micro Circuits -11.11% -16.63% -13.04%
Semiconductor Manufacturing International Corporation 10.33% 5.63% 3.10%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Applied Micro Circuits and Semiconductor Manufacturing International Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Applied Micro Circuits 0 4 0 0 2.00
Semiconductor Manufacturing International Corporation 4 2 2 0 1.75

Applied Micro Circuits currently has a consensus price target of $8.00, indicating a potential downside of 5.33%. Semiconductor Manufacturing International Corporation has a consensus price target of $8.68, indicating a potential upside of 14.36%. Given Semiconductor Manufacturing International Corporation’s higher probable upside, analysts clearly believe Semiconductor Manufacturing International Corporation is more favorable than Applied Micro Circuits.

Earnings and Valuation

This table compares Applied Micro Circuits and Semiconductor Manufacturing International Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Applied Micro Circuits N/A N/A N/A ($0.38) -22.24
Semiconductor Manufacturing International Corporation $3.13 billion 2.67 $1.14 billion $0.34 22.32

Semiconductor Manufacturing International Corporation has higher revenue and earnings than Applied Micro Circuits. Applied Micro Circuits is trading at a lower price-to-earnings ratio than Semiconductor Manufacturing International Corporation, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

73.3% of Applied Micro Circuits shares are held by institutional investors. Comparatively, 0.7% of Semiconductor Manufacturing International Corporation shares are held by institutional investors. 12.4% of Applied Micro Circuits shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Semiconductor Manufacturing International Corporation beats Applied Micro Circuits on 7 of the 11 factors compared between the two stocks.

About Applied Micro Circuits

Applied Micro Circuits Corporation (AMCC) provides silicon solutions for cloud infrastructure and data centers, as well as connectivity products for edge, metro and long haul communications equipment. The Company’s products serve Computing and Connectivity markets. Its Computing products include the X-Gene family of server processors, based on the ARMv8 64-bit Instruction Set Architecture (ISA), which target mainstream cloud and data center infrastructure, including hyperscale, telco, enterprise and high performance computing. It also offers embedded computing products, which include HeliX family of processors, based on the ARM 64-bit ISA and its PowerPC products, based on Power Architecture. Its embedded Computing products are deployed in various applications, including networking and telecom, enterprise storage and industrial applications. The Connectivity business includes X-Weave family of products for service providers and public cloud, private cloud and enterprise data centers.

About Semiconductor Manufacturing International Corporation

Semiconductor Manufacturing International Corporation is an investment holding company principally engaged in the computer-aided design, manufacture, packaging and trading of integrated circuits (IC), as well as the provision of other semiconductor services. The Company is also involved in the design and manufacture of semiconductor masks. The Company’s main products are various types of wafers. The Company distributes its products in domestic market and to overseas markets, such as the Europe and the United States.

Receive News & Ratings for Applied Micro Circuits Co. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Applied Micro Circuits Co. and related companies with Analyst Ratings Network's FREE daily email newsletter.