Advanced Micro Devices, Inc. (AMD)vs Coinbase Global, Inc. (COIN)

Quick verdict

AMD and COIN operate in different corners of the market but both carry elevated risk profiles, reflected in betas of 2.469 and 3.351 respectively. AMD trades on a trailing P/E of 163.5 but a forward P/E of just 10.72, implying the market expects a sharp earnings acceleration, supported by a PEG of 1.33 and a 5-year EPS CAGR of 20.8%. COIN's trailing P/E is 49.06 versus a forward 36.74, with a negative PEG of -1.11 reflecting inconsistent earnings growth (3-year EPS CAGR of -53.45%). On the scorecard, AMD wins growth and income verdicts (A grades), COIN edges valuation and momentum (B), while quality is tied. Overall scores favour COIN marginally (3.5 vs 2.5), though AMD offers a dividend yield of 3.48% versus none for COIN. Style tags label AMD as 'income, high-growth' and COIN as 'high-volatility'.

2-year relative performance

At-a-glance comparison

Business model and revenue mix

AMD, founded in 1969 and based in Santa Clara, California, is a global semiconductor company operating within the Technology sector, competing in processors and chips for computing, gaming, and data centre markets. Coinbase Global operates in Financial Services, specifically the Financial - Data & Stock Exchanges industry, providing infrastructure and technology for the cryptoeconomy across US and international markets. AMD's business is tied to semiconductor demand cycles and hardware innovation, evidenced by a gross margin of 50.28% and operating margin of 11.65%. Coinbase's model is linked to cryptocurrency trading volumes and adoption, shown by a notably higher gross margin of 75.94% but a much thinner operating margin of just 0.43%, indicating higher revenue pass-through costs or platform-related expenses relative to its top-line scale.

Valuation

AMD's trailing P/E of 163.5 appears stretched, but its forward P/E of 10.72 suggests analysts anticipate substantial earnings growth, a view reinforced by a PEG ratio of 1.33. Its EV/EBITDA of 101.34 is high, and price-to-sales sits at 21.92, with price-to-book at 12.74. COIN trades at a trailing P/E of 49.06 and forward P/E of 36.74, alongside a price-to-sales of 7.27 and price-to-book of 3.15 — both lower than AMD's multiples. However, COIN's PEG of -1.11 reflects negative or volatile earnings growth trends rather than cheap valuation. COIN's EV/EBITDA of 31.62 is also considerably lower than AMD's. The valuation verdict favours COIN (B) over AMD, though AMD's FCF yield of 6.49% comfortably exceeds COIN's 1.96%, indicating stronger free cash flow generation relative to its market value.

Growth profile

AMD shows strong historical growth, with a 3-year revenue CAGR of 34.34% and 5-year revenue CAGR of 11.96%, alongside an exceptional 3-year EPS CAGR of 164.36% and 5-year EPS CAGR of 20.8%. COIN's revenue growth is more moderate, with a 3-year CAGR of 9.4% but a stronger 5-year CAGR of 20.07%. On earnings, COIN's figures are volatile: a negative 3-year EPS CAGR of -53.45% contrasts with a positive 5-year EPS CAGR of 38.73%, suggesting inconsistent profitability over recent periods followed by earlier stronger growth. The growth verdict favours AMD (A grade), consistent with its more stable and pronounced earnings trajectory across both time frames, whereas COIN's growth pattern indicates greater unpredictability tied to crypto market cycles.

Profitability and quality

AMD posts a net margin of 13.37% against an operating margin of 11.65%, with return on equity of 8.08% and return on invested capital of 6.22%. COIN's net margin is comparable at 13.78%, but its operating margin is markedly lower at 0.43%, and its ROIC stands at just 0.1%, well below AMD's. COIN's ROE of 5.68% also trails AMD's 8.08%. Despite COIN's higher gross margin (75.94% vs AMD's 50.28%), the gap narrows sharply further down the income statement, pointing to heavier operating costs relative to revenue. The quality verdict is a TIE between the two, reflecting that each has offsetting strengths — AMD in capital efficiency and operating leverage, COIN in gross margin structure.

Balance-sheet risk

AMD holds cash of approximately $23.36 billion against total debt of $104.18 billion, yielding a net debt/EBITDA ratio of 1.19 and a current ratio of 2.72. Its interest coverage stands at 4.97. COIN holds a much larger cash position of roughly $70.19 billion versus total debt of $117.39 billion, resulting in a negative net debt/EBITDA of -0.28, indicating net cash exceeds debt on an EBITDA basis. COIN's current ratio of 2.14 is slightly below AMD's, but its interest coverage of 28.4 is substantially stronger. The balance sheet verdict favours AMD (B grade) overall, though COIN's negative net leverage and high interest coverage highlight a relatively conservative debt-servicing capacity despite its larger absolute debt figure.

Price performance and shareholder returns

AMD's year-to-date return stands at 47.65%, with a 1-year return of 8.25%, a negative 3-year annualised return of -2.01%, and a strong 5-year annualised return of 38.35%. Its maximum 5-year drawdown was -56.26%. COIN's YTD return is negative at -26.37%, though its 1-year return of 6.34% is broadly similar to AMD's. COIN's 3-year annualised return of 28.41% outpaces AMD's, but its 5-year annualised return of -4.64% is notably weaker, alongside a comparable maximum drawdown of -50.24%. The momentum verdict slightly favours AMD's rival with a B grade for COIN versus AMD's B grade, and both stocks demonstrate significant volatility, consistent with their high beta values of 2.469 and 3.351 respectively.

Which stock fits which investor

Based on the supplied verdicts, AMD is identified as best suited for growth-oriented, income-focused, and quality-focused investors, reflecting its A grades in growth and income and its dividend yield of 3.48% with a payout ratio of 41.8%. COIN is identified as best suited for value-oriented investors, aligning with its relatively lower price-to-sales (7.27) and price-to-book (3.15) ratios compared to AMD. AMD's style tag of 'income, high-growth' contrasts with COIN's 'high-volatility' tag, underscoring differing risk-reward characteristics. Investors weighing capital appreciation potential alongside income may find AMD's profile more aligned with the data, while those prioritising relative valuation metrics may lean toward COIN, noting both carry elevated beta values above 2.4.

• Value: COIN
• Growth: AMD
• Income: AMD
• Quality: AMD

Frequently asked questions

Which stock has stronger growth metrics, AMD or COIN?

AMD shows stronger and more consistent growth, with a 3-year revenue CAGR of 34.34% and 3-year EPS CAGR of 164.36%, compared to COIN's 3-year revenue CAGR of 9.4% and negative 3-year EPS CAGR of -53.45%. The growth verdict rates AMD an A.

Which company has a stronger balance sheet, AMD or COIN?

COIN holds more cash ($70.19bn vs AMD's $23.36bn) and has a negative net debt/EBITDA of -0.28 versus AMD's 1.19, plus higher interest coverage of 28.4 versus AMD's 4.97. Despite this, the overall balance sheet verdict favours AMD with a B grade.

Does AMD or COIN pay a dividend?

AMD pays a dividend yield of 3.48% with a payout ratio of 41.8%. COIN does not pay a dividend, showing a 0% dividend yield, though it has a negative buyback yield of -0.74%.

Which stock is considered more volatile?

COIN carries a higher beta of 3.351 compared to AMD's 2.469, and is tagged 'high-volatility' in the data. Both stocks have experienced significant maximum drawdowns over 5 years, at -56.26% for AMD and -50.24% for COIN.

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