Analyzing Rambus (NASDAQ:RMBS) & Soitec (OTCMKTS:SLOIF)

Rambus (NASDAQ:RMBS) and Soitec (OTCMKTS:SLOIF) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and price targets for Rambus and Soitec, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rambus	0	4	5	1	2.70
Soitec	1	0	0	0	1.00

Rambus currently has a consensus target price of $130.43, indicating a potential upside of 0.11%. Given Rambus’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Rambus is more favorable than Soitec.

Valuation & Earnings

This table compares Rambus and Soitec”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rambus	$707.63 million	19.91	$230.46 million	$2.10	62.04
Soitec	$937.30 million	6.59	$98.66 million	N/A	N/A

Rambus has higher earnings, but lower revenue than Soitec.

Profitability

This table compares Rambus and Soitec’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rambus	31.90%	17.41%	15.47%
Soitec	N/A	N/A	N/A

Risk & Volatility

Rambus has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500. Comparatively, Soitec has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500.

Insider and Institutional Ownership

88.5% of Rambus shares are owned by institutional investors. 0.8% of Rambus shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Rambus beats Soitec on 12 of the 13 factors compared between the two stocks.

About Rambus

Rambus Inc. provides semiconductor products in the United States, South Korea, Singapore, and internationally. The company offers DDR memory interface chips, including DDR5 and DDR4 memory interface chips to module manufacturers, OEMs, and hyperscalers; silicon IP, such as interface and security IP solutions that move and protect data in advanced data center, government, and automotive applications; and interface IP solutions for high-speed memory and chip-to-chip digital controller IP. It also provides a portfolios of security IP solutions, including crypto cores, hardware roots of trust, high-speed protocol engines, and chip provisioning technologies; and portfolio of patents that covers memory architecture, high-speed serial links, and security products. It markets its products and services through its direct sales force and distributors. Rambus Inc. was incorporated in 1990 and is headquartered in San Jose, California.

About Soitec

Soitec SA designs and manufactures semiconductor materials worldwide. Its products are used to manufacture chips that are used in smart phones, tablets, computers, IT servers, and data centers, as well as electronic components in cars, connected devices, and industrial and medical equipment. It provides CONNECT Radio Frequency Silicon-on-Insulator (RF-SOI) for smartphone front-end modules; CONNECT Piezoelectric-on-Insulator RF filters for smartphone; and CONNECT RF gallium nitride for 5g infrastructure base stations and smartphones, as well as CONNECT Fully Depleted Silicon-On-Insulator (FD-SOI). The company also offers Auto Power-SOI product for automotive and industrial markets; Auto Smartsic for green mobility; and AUTO POWER-allium nitride for power efficiency, as well as AUTO FD-SOI for automotive radar and processors. In addition, it provides Smart photonics-SOI products for optical networking; Smart Imager-SOI products for next generation 3D image sensing; Smart FD-SOI for ultra low power, energy efficient, and body biasing; smart partially depleted (PD) -SOI for high-performance computing markets. Soitec SA was incorporated in 1992 and is headquartered in Bernin, France.