Head to Head Analysis: Advanced Micro Devices (NASDAQ:AMD) versus TranSwitch (OTCMKTS:TXCCQ)

Advanced Micro Devices (NASDAQ:AMD) and TranSwitch (OTCMKTS:TXCCQ) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Valuation and Earnings

This table compares Advanced Micro Devices and TranSwitch”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Advanced Micro Devices	$25.79 billion	6.39	$1.64 billion	$0.99	102.70
TranSwitch	N/A	N/A	N/A	N/A	N/A

Advanced Micro Devices has higher revenue and earnings than TranSwitch.

Analyst Recommendations

This is a summary of current ratings and target prices for Advanced Micro Devices and TranSwitch, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Advanced Micro Devices	1	9	19	3	2.75
TranSwitch	0	0	0	0	0.00

Advanced Micro Devices currently has a consensus target price of $155.83, suggesting a potential upside of 53.27%. Given Advanced Micro Devices’ stronger consensus rating and higher probable upside, research analysts plainly believe Advanced Micro Devices is more favorable than TranSwitch.

Profitability

This table compares Advanced Micro Devices and TranSwitch’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Advanced Micro Devices	6.36%	7.42%	6.14%
TranSwitch	N/A	N/A	N/A

Volatility and Risk

Advanced Micro Devices has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500. Comparatively, TranSwitch has a beta of 14.75, indicating that its stock price is 1,375% more volatile than the S&P 500.

Insider and Institutional Ownership

71.3% of Advanced Micro Devices shares are owned by institutional investors. 0.7% of Advanced Micro Devices shares are owned by company insiders. Comparatively, 6.3% of TranSwitch shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Advanced Micro Devices beats TranSwitch on 9 of the 11 factors compared between the two stocks.

About Advanced Micro Devices

Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. It operates through Data Center, Client, Gaming, and Embedded segments. The company offers x86 microprocessors and graphics processing units (GPUs) as an accelerated processing unit, chipsets, data center, and professional GPUs; and embedded processors, and semi-custom system-on-chip (SoC) products, microprocessor and SoC development services and technology, data processing unites, field programmable gate arrays (FPGA), and adaptive SoC products. It provides processors under the AMD Ryzen, AMD Ryzen PRO, Ryzen Threadripper, Ryzen Threadripper PRO, AMD Athlon, AMD Athlon PRO, and AMD PRO A-Series brand names; graphics under the AMD Radeon graphics and AMD Embedded Radeon graphics; and professional graphics under the AMD Radeon Pro graphics brand name. In addition, the company offers data center graphics under the Radeon Instinct and Radeon PRO V-series brands, as well as servers under the AMD Instinct accelerators brand; server microprocessors under the AMD EPYC brands; low power solutions under the AMD Athlon, AMD Geode, AMD Ryzen, AMD EPYC, AMD R-Series, and G-Series brands; FPGA products under the Virtex-6, Virtex-7, Virtex UltraScale+, Kintex-7, Kintex UltraScale, Kintex UltraScale+, Artix-7, Artix UltraScale+, Spartan-6, and Spartan-7 brands; adaptive SOCs under the Zynq-7000, Zynq UltraScale+ MPSoC, Zynq UltraScale+ RFSoCs, Versal HBM, Versal Premium, Versal Prime, Versal AI Core, Versal AI Edge, Vitis, and Vivado brands; and compute and network acceleration board products under the Alveo brand. It serves original equipment and design manufacturers, public cloud service providers, system integrators, independent distributors, and add-in-board manufacturers through its direct sales force, and sales representatives. Advanced Micro Devices, Inc. was incorporated in 1969 and is headquartered in Santa Clara, California.

About TranSwitch

TranSwitch Corporation, together with its subsidiaries, designs, develops, and supplies integrated circuit and intellectual property solutions that provide functionality for voice, data, and video communications equipment for the customer premises and network infrastructure markets. The company provides integrated multi-core network processor system-on-a-chip (SoC) solutions for fixed, 3G and 4G mobile, VoIP, and multimedia applications. It offers converged network infrastructure products, including infrastructure VoIP processors for wire-line and wireless carrier equipment; access VoIP processors; and EoS/EoPDH mappers and framers for carriers to transport data traffic over SONET, SDH, and PDH networks. The company also offers broadband customer premises equipment, such as connectivity solutions comprising HDMI, DisplayPort, MHL, HDP, Ethernet IP cores, and MHDP transceivers for consumer electronics, home network equipment, and industrial and automotive applications; and multi-service SoCs for customer premises equipment that support telephone voice, fax, and routing functionality over broadband access networks. TranSwitch Corporation sells its products to public network system original equipment manufacturers (OEMs), WAN and LAN equipment OEMs, Internet-oriented OEMs, and communications test and performance measurement equipment OEMs; and government, universities, and private laboratories. The company offers its products directly in North America, Taiwan, China, Japan, Korea, and Europe, as well as through a network of distributors in North America, Asia, and Europe. TranSwitch Corporation was founded in 1988 and is headquartered in Shelton, Connecticut. On November 21, 2013, TranSwitch Corporation filed a voluntary petition for liquidation under Chapter 7 in the U.S. Bankruptcy Court for the District of Connecticut.