Rambus (NASDAQ:RMBS) and MoSys (NASDAQ:MOSY) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.

Profitability

This table compares Rambus and MoSys’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rambus -45.18% 7.78% 5.58%
MoSys -15.79% 11.69% 3.98%

Analyst Recommendations

This is a breakdown of recent ratings for Rambus and MoSys, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rambus 0 1 3 0 2.75
MoSys 0 0 0 0 N/A

Rambus currently has a consensus target price of $15.00, indicating a potential upside of 78.36%. Given Rambus’ higher probable upside, analysts plainly believe Rambus is more favorable than MoSys.

Earnings and Valuation

This table compares Rambus and MoSys’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rambus $393.10 million 2.32 -$22.86 million $0.45 18.69
MoSys $8.84 million 1.04 -$10.66 million N/A N/A

MoSys has lower revenue, but higher earnings than Rambus.

Risk & Volatility

Rambus has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500. Comparatively, MoSys has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.

Institutional and Insider Ownership

76.8% of Rambus shares are owned by institutional investors. Comparatively, 2.5% of MoSys shares are owned by institutional investors. 3.2% of Rambus shares are owned by insiders. Comparatively, 2.2% of MoSys shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Rambus beats MoSys on 8 of the 12 factors compared between the two stocks.

About Rambus

Rambus Inc. provides semiconductor products in South Korea and internationally. The company operates through Memory and Interfaces, Security, and Other segments. It focuses on the design, development, and manufacturing through partnerships and licensing of technology and solutions related to memory and interfaces; and design, development, deployment, and licensing of technologies for chip, system and in-field application security, anti-counterfeiting, smart ticketing, and mobile payments. The company also focuses on the research and development in the area of emerging technologies; and design, development, and licensing of technologies for advanced LED-based lighting solutions, as well as providing a range of services, including know-how and technology transfer, product design and development, system integration, and other services. Its products are integrated into a range of devices and systems, powering, and securing diverse applications, including big data, Internet of things security, mobile, mobile payments, and smart ticketing. Rambus Inc. was founded in 1990 and is headquartered in Sunnyvale, California.

About MoSys

MoSys, Inc., a semiconductor company, develops and sells integrated circuits (ICs) for the high-speed cloud networking, communications, security appliance, video, monitor and test, data center, and computing markets. The company offers memory-dominated ICs under the Bandwidth Engine and Programmable Search Engine names. It serves networking, communications, and data center equipment providers, as well as their subsystem and component vendors; and original equipment manufacturers through direct sales personnel, sales representatives, and distributors in North America, Taiwan, Japan, and internationally. The company was founded in 1991 and is headquartered in San Jose, California.

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