Critical Contrast: Rambus (NASDAQ:RMBS) and Adesto Technologies Corporation (IOTS)
Rambus (NASDAQ: RMBS) and Adesto Technologies Corporation (NASDAQ:IOTS) 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 dividends, earnings, valuation, institutional ownership, risk, profitabiliy and analyst recommendations.
Institutional & Insider Ownership
79.2% of Rambus shares are held by institutional investors. Comparatively, 14.6% of Adesto Technologies Corporation shares are held by institutional investors. 2.0% of Rambus shares are held by company insiders. Comparatively, 22.1% of Adesto Technologies Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Rambus and Adesto Technologies Corporation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Rambus||$361.27 million||3.90||$105.99 million||$0.07||180.14|
|Adesto Technologies Corporation||$45.10 million||1.74||-$9.27 million||($0.85)||-5.82|
Rambus has higher revenue and earnings than Adesto Technologies Corporation. Adesto Technologies Corporation is trading at a lower price-to-earnings ratio than Rambus, indicating that it is currently the more affordable of the two stocks.
This table compares Rambus and Adesto Technologies Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Adesto Technologies Corporation||-28.49%||-62.50%||-23.16%|
This is a breakdown of current ratings and recommmendations for Rambus and Adesto Technologies Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Adesto Technologies Corporation||0||0||2||1||3.33|
Rambus presently has a consensus price target of $15.00, suggesting a potential upside of 18.95%. Adesto Technologies Corporation has a consensus price target of $6.00, suggesting a potential upside of 21.21%. Given Adesto Technologies Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe Adesto Technologies Corporation is more favorable than Rambus.
Volatility & Risk
Rambus has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, Adesto Technologies Corporation has a beta of 2.33, meaning that its stock price is 133% more volatile than the S&P 500.
Rambus beats Adesto Technologies Corporation on 9 of the 14 factors compared between the two stocks.
Rambus Company Profile
Rambus Inc. (Rambus) produces hardware and software technologies. The Company’s segments include Memory and Interface Division (MID), which focuses the design, development, manufacturing through partnerships and licensing of technology and solutions that is related to memory and interfaces; Rambus Security Division (RSD), which focuses on the design, development and licensing of technologies for chip and system security, anti-counterfeiting, smart ticketing and mobile payments; Emerging Solutions Division (ESD), which encompasses its long-term research and development efforts in the area of emerging technologies, and Rambus Lighting Division (RLD), which focuses on the design, development and licensing of technologies for lighting. The Company collaborates with application-specific integrated circuit (ASIC) and System-on-Chip (SoC) designers, foundries, Internet protocol (IP) developers, processor companies, electronic design automation (EDA) companies and validation laboratories.
Adesto Technologies Corporation Company Profile
Adesto Technologies Corporation is a provider of application-specific and ultra-low power non-volatile memory products. The Company optimizes its non-volatile memory products for Internet of Things (IoT), applications, including current and next-generation Internet-connected devices in the consumer, industrial, medical and wearables markets. It operates in application-specific and feature-rich, ultra-low power non-volatile memory (NVM) products segment. It combines its non-volatile memory design capabilities with intellectual property and differentiated technology platforms to deliver products that manage the overall energy consumption of its customers’ systems and battery life. Its products feature embedded intelligence in a small form factor. It sells its products directly to original equipment manufacturers and original design manufacturers, respectively that manufacture products for its end customers.
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