Analyzing Rambus (RMBS) and The Competition

Rambus (NASDAQ:RMBS) is one of 221 public companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it contrast to its rivals? We will compare Rambus to related companies based on the strength of its profitability, dividends, institutional ownership, analyst recommendations, risk, valuation and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rambus	33.40%	19.43%	17.59%
Rambus Competitors	-1,278.97%	-126.38%	-4.00%

Risk and Volatility

Rambus has a beta of 1.93, indicating that its share price is 93% more volatile than the S&P 500. Comparatively, Rambus’ rivals have a beta of 2.80, indicating that their average share price is 180% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Rambus and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rambus	0	3	6	1	2.80
Rambus Competitors	3496	12339	25756	995	2.57

Rambus currently has a consensus target price of $147.00, indicating a potential upside of 110.96%. As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 60.33%. Given Rambus’ stronger consensus rating and higher probable upside, research analysts clearly believe Rambus is more favorable than its rivals.

Institutional & Insider Ownership

88.5% of Rambus shares are owned by institutional investors. Comparatively, 54.6% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by institutional investors. 0.7% of Rambus shares are owned by insiders. Comparatively, 11.9% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Rambus and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Rambus	$796.11 million	$230.46 million	28.67
Rambus Competitors	$1,259.14 billion	$2.48 billion	8.14

Rambus’ rivals have higher revenue and earnings than Rambus. Rambus is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Rambus beats its rivals on 8 of the 13 factors compared.

Rambus Company Profile

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.