Tower Semiconductor (NASDAQ:TSEM – Get Free Report) and Rambus (NASDAQ:RMBS – Get Free Report) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.
Valuation and Earnings
This table compares Tower Semiconductor and Rambus’ revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Tower Semiconductor | $1.42 billion | N/A | $518.49 million | $4.41 | 9.31 |
Rambus | $477.53 million | 10.44 | $333.90 million | $3.27 | 14.15 |
Tower Semiconductor has higher revenue and earnings than Rambus. Tower Semiconductor is trading at a lower price-to-earnings ratio than Rambus, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
Profitability
This table compares Tower Semiconductor and Rambus’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Tower Semiconductor | 35.58% | 8.33% | 6.95% |
Rambus | 48.31% | 16.74% | 13.70% |
Analyst Ratings
This is a summary of current ratings for Tower Semiconductor and Rambus, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Tower Semiconductor | 0 | 0 | 3 | 0 | 3.00 |
Rambus | 0 | 0 | 4 | 0 | 3.00 |
Tower Semiconductor presently has a consensus target price of $46.33, suggesting a potential upside of 12.84%. Rambus has a consensus target price of $77.75, suggesting a potential upside of 68.07%. Given Rambus’ higher possible upside, analysts plainly believe Rambus is more favorable than Tower Semiconductor.
Risk & Volatility
Tower Semiconductor has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Rambus has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500.
Summary
Rambus beats Tower Semiconductor on 8 of the 11 factors compared between the two stocks.
About Tower Semiconductor
Tower Semiconductor Ltd., an independent semiconductor foundry, focus on specialty process technologies to manufacture analog intensive mixed-signal semiconductor devices in Israel, the United States, Japan, Europe, and internationally. It provides various customizable process technologies, including SiGe, BiCMOS, mixed signal/CMOS, RF CMOS, CMOS image sensor, integrated power management, and MEMS. The Company also provides design enablement platform for quick and accurate design cycle, as well as transfer optimization and development process services to integrated device manufacturers and fabless companies. It serves various markets, such as consumer electronics, personal computers, communications, automotive, industrial, aerospace, military, and medical device products. The company was incorporated in 1993 and is headquartered in Migdal Haemek, Israel.
About Rambus
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.
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