Rambus (NASDAQ:RMBS) and Solaredge Technologies (NASDAQ:SEDG) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, earnings, risk and analyst recommendations.
Institutional & Insider Ownership
80.2% of Rambus shares are owned by institutional investors. Comparatively, 79.8% of Solaredge Technologies shares are owned by institutional investors. 1.0% of Rambus shares are owned by insiders. Comparatively, 7.9% of Solaredge Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Rambus and Solaredge Technologies’ gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rambus | $401.10 million | 4.15 | -$157.96 million | $0.76 | 19.66 |
| Solaredge Technologies | $937.24 million | 5.71 | $128.83 million | $2.69 | 40.94 |
Solaredge Technologies has higher revenue and earnings than Rambus. Rambus is trading at a lower price-to-earnings ratio than Solaredge Technologies, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Rambus and Solaredge Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rambus | -20.91% | -0.30% | -0.22% |
| Solaredge Technologies | 8.39% | 15.89% | 9.08% |
Analyst Ratings
This is a summary of recent recommendations and price targets for Rambus and Solaredge Technologies, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rambus | 0 | 0 | 3 | 0 | 3.00 |
| Solaredge Technologies | 0 | 3 | 9 | 0 | 2.75 |
Rambus currently has a consensus target price of $15.00, suggesting a potential upside of 0.40%. Solaredge Technologies has a consensus target price of $93.33, suggesting a potential downside of 15.25%. Given Rambus’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Rambus is more favorable than Solaredge Technologies.
Risk and Volatility
Rambus has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500. Comparatively, Solaredge Technologies has a beta of 0.06, meaning that its share price is 94% less volatile than the S&P 500.
Summary
Solaredge Technologies beats Rambus on 10 of the 14 factors compared between the two stocks.
About Rambus
Rambus Inc. provides semiconductor products in the United States, Japan, Europe, Taiwan, China, South Korea, Canada, Singapore, Asia, and internationally. The company operates through three divisions: Memory and Interfaces, Rambus Security, and Emerging Solutions. The Memory and Interfaces division engages in the design, development, and manufacturing through partnerships and licensing of technology and solutions related to memory and interfaces. It offers standards-compatible memory and SerDes solutions, including server DIMM memory interface chips, architectures, and IP cores for high-speed memory and SerDes interfaces. The Rambus Security division is involved in the design, development, deployment, and licensing of technologies for chip, system and in-field application security, anti-counterfeiting, smart ticketing, and mobile payments. It provides a suite of products and services from DPA countermeasures and cores to CryptoManager platform, mobile payments, and smart ticketing. The Emerging Solutions division engages in the research and development in the area of emerging technologies. The company also offers technology licenses to support the implementation and adoption of technology in their products or services; and a range of services, which include know-how and technology transfer, product design and development, system integration, and other services. Rambus Inc. was founded in 1990 and is headquartered in Sunnyvale, California.
About Solaredge Technologies
SolarEdge Technologies, Inc., together with its subsidiaries, designs, develops, and sells direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations worldwide. Its SolarEdge system consists of power optimizers, inverters, communication and smart energy management solutions, and a cloud based monitoring platform. The company’s products are used in a range of solar market segments, such as residential, commercial, and small utility-scale solar installations. It also provides pre-sales support, ongoing trainings, and technical support and after installation services; and lithium-ion cells, batteries, and energy storage solutions for various industries, including energy storage systems, residential and commercial solar systems, uninterruptible power supplies, electric vehicles, aerospace, marine, and others. The company sells its products to the providers of solar PV systems; and solar installers and distributors, electrical equipment wholesalers, and PV module manufacturers, as well as engineering, procurement, and construction firms. SolarEdge Technologies, Inc. was founded in 2006 and is headquartered in Herzliya, Israel.
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