Rambus (NASDAQ:RMBS) and ChipMOS Technologies (NASDAQ:IMOS) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.
Profitability
This table compares Rambus and ChipMOS 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% |
| ChipMOS Technologies | 13.02% | 13.86% | 7.62% |
Insider & Institutional Ownership
80.2% of Rambus shares are owned by institutional investors. Comparatively, 5.5% of ChipMOS Technologies shares are owned by institutional investors. 1.0% of Rambus shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Rambus and ChipMOS Technologies’ revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rambus | $401.10 million | 3.83 | -$157.96 million | $0.76 | 18.12 |
| ChipMOS Technologies | $603.80 million | 1.66 | $43.31 million | N/A | N/A |
ChipMOS Technologies has higher revenue and earnings than Rambus.
Risk & Volatility
Rambus has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500. Comparatively, ChipMOS Technologies has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and price targets for Rambus and ChipMOS Technologies, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rambus | 0 | 0 | 3 | 0 | 3.00 |
| ChipMOS Technologies | 0 | 0 | 0 | 0 | N/A |
Rambus presently has a consensus target price of $15.00, suggesting a potential upside of 8.93%. Given Rambus’ higher probable upside, research analysts plainly believe Rambus is more favorable than ChipMOS Technologies.
Summary
Rambus beats ChipMOS Technologies on 7 of the 12 factors compared between the two stocks.
Rambus Company Profile
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.
ChipMOS Technologies Company Profile
ChipMOS TECHNOLOGIES INC. researches, develops, manufactures, and sells high integration and high precision integrated circuits, and related assembly and testing services. It provides a range of back-end assembly and test services, including engineering test, wafer probing and final test of memory and logic/mixed-signal semiconductors, as well as leadframe-and organic substrate-based package assembly services for memory and logic/mixed-signal semiconductors; and gold bumping, reel to reel assembly, and test services for LCD and other flat-panel display driver semiconductors. The company’s semiconductors are used in personal computers; graphics applications, such as game consoles; communications equipment; mobile products comprising cellular handsets, tablets, and consumer electronic products; and automotive/industry and display applications, such as flat-panel displays. It serves customers in Taiwan, Japan, Korea, Hong Kong, and the United States. The company was founded in 1997 and is headquartered in Hsinchu, Taiwan.
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