Rambus (RMBS) and Smart Global (SGH) Head-To-Head Analysis
Smart Global (NASDAQ: SGH) and Rambus (NASDAQ:RMBS) are both small-cap technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.
Insider & Institutional Ownership
91.8% of Smart Global shares are owned by institutional investors. Comparatively, 77.1% of Rambus shares are owned by institutional investors. 2.0% of Rambus shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This is a breakdown of recent ratings for Smart Global and Rambus, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Smart Global presently has a consensus price target of $36.36, suggesting a potential upside of 16.83%. Rambus has a consensus price target of $15.98, suggesting a potential upside of 7.58%. Given Smart Global’s stronger consensus rating and higher possible upside, analysts clearly believe Smart Global is more favorable than Rambus.
Earnings and Valuation
This table compares Smart Global and Rambus’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Smart Global||$132.88 million||5.08||-$7.79 million||($0.53)||-58.72|
|Rambus||$336.60 million||4.84||$6.81 million||$0.09||165.00|
Rambus has higher revenue and earnings than Smart Global. Smart Global 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 Smart Global and Rambus’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Rambus beats Smart Global on 7 of the 13 factors compared between the two stocks.
About Smart Global
Smart Global Holdings Inc. is a holding company. The Company through its subsidiaries provides specialty memory solutions. The Company manufactures memory for desktops, notebooks, servers and mobile memory for smartphones. The Company also serves original equipment manufacturer (OEM), customers to develop memory solutions. The Company also provides customized, integrated supply chain services to certain OEM customers to assist them in the management and execution of their procurement processes. The Company offers its products and services under a range of categories including dynamic random-access memory (DRAM) components, DRAM modules, flash components, mobile memory and supply chain services. The Company offers a range of DRAM modules including DIMMs, nonvolatile DIMMs, load reducing DIMMs, registered DIMMs, unbuffered DIMMs, small outline DIMMs, and mini-DIMMs.
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.
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