Intel’s average annual three-year return is 9% while AMD’s is 2%. Therefore, Intel has produced a higher return for their investors over the previous three years. But when comparing these returns to the PHLX Semiconductor Index and NASDAQ Composite Index both these stocks have underperformed. The PHLX Semiconductor Index saw a three-year return of 14% and the NASDAQ Composite Index had a return of 12%.

When we dig deeper into the financials of these two companies we find out why Intel has a far larger market capitalization compared to AMD.

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Intel’s Profit Margin is also higher than the industry average which was 14.20%. The positive earnings of Intel and the negative earnings for AMD has resulted in better ratios for Intel when it comes to Return on Equity, Return on Assets and P/E ratio. Although Intel’s P/E ratio of 14.25 is in the positive it also showcases that they are expected to grow less than the industry average which has a P/E ratio of 22.10.

Based on key ratios Intel has a clear financial advantage over AMD for at least the previous four years starting in 2012. Where Intel is producing consistent positive earnings since 2012, AMD is producing negative earnings. AMD is also highly leveraged, which is resulting in a very high Debt to Equity ratio of 113.36%. Intel’s Debt to Equity ratio of 39.79%, even though its higher than the industry average of 27.61%, is still relatively low when compared to