Impinj (NASDAQ:PI) versus Rambus (NASDAQ:RMBS) Financial Contrast

Impinj (NASDAQ:PI) and Rambus (NASDAQ:RMBS) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.

Volatility and Risk

Impinj has a beta of 1.92, suggesting that its share price is 92% more volatile than the S&P 500. Comparatively, Rambus has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500.

Earnings and Valuation

This table compares Impinj and Rambus”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Impinj	$361.08 million	11.87	-$10.85 million	($0.92)	-153.00
Rambus	$707.63 million	15.50	$230.46 million	$2.10	48.30

Rambus has higher revenue and earnings than Impinj. Impinj is trading at a lower price-to-earnings ratio than Rambus, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Impinj and Rambus, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Impinj	1	3	5	0	2.44
Rambus	0	4	6	1	2.73

Impinj currently has a consensus target price of $175.00, suggesting a potential upside of 24.33%. Rambus has a consensus target price of $134.75, suggesting a potential upside of 32.86%. Given Rambus’ stronger consensus rating and higher probable upside, analysts clearly believe Rambus is more favorable than Impinj.

Insider and Institutional Ownership

88.5% of Rambus shares are owned by institutional investors. 6.8% of Impinj shares are owned by insiders. Comparatively, 0.7% of Rambus shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Impinj	-7.66%	5.67%	2.18%
Rambus	31.90%	17.41%	15.47%

Summary

Rambus beats Impinj on 13 of the 15 factors compared between the two stocks.

About Impinj

Impinj, Inc. operates a cloud connectivity platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Its platform wirelessly connects items and delivers data about the connected items to business and consumer applications. The company’s platform comprises endpoint ICs, a miniature radios-on-a-chip that attaches to a host item and includes a number to identify the item. Its platform also consists of systems products that consists of reader ICs, readers, and gateways to wirelessly provide power to and communicate bidirectionally with endpoint ICs on host items, as well as to read, write, authenticate, and engage the endpoint ICs on those items; and software and algorithms that enable its partners to solve enterprise business problems, such as retail self-checkout and loss prevention. The company primarily serves retail, supply chain and logistics, automotive, aviation, banking, datacenters, food, healthcare, industrial and manufacturing, linen and uniform tracking, sports, and travel industries through original equipment and device manufacturers, tag service bureaus, systems integrators, value-added resellers, independent software vendors, and other solution partners. Impinj, Inc. was incorporated in 2000 and is headquartered in Seattle, Washington.

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.