Rambus (NASDAQ:RMBS – Get Free Report) and SCI Engineered Materials (OTCMKTS:SCIA – Get Free Report) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, dividends and profitability.
Profitability
This table compares Rambus and SCI Engineered Materials’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rambus | 31.90% | 17.41% | 15.47% |
| SCI Engineered Materials | 7.82% | 13.46% | 10.17% |
Valuation and Earnings
This table compares Rambus and SCI Engineered Materials”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rambus | $721.16 million | 21.47 | $230.46 million | $2.10 | 68.18 |
| SCI Engineered Materials | $19.61 million | 1.82 | $1.75 million | $0.41 | 19.51 |
Rambus has higher revenue and earnings than SCI Engineered Materials. SCI Engineered Materials is trading at a lower price-to-earnings ratio than Rambus, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Rambus has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500. Comparatively, SCI Engineered Materials has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Rambus and SCI Engineered Materials, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rambus | 0 | 4 | 5 | 1 | 2.70 |
| SCI Engineered Materials | 0 | 0 | 0 | 0 | 0.00 |
Rambus presently has a consensus price target of $130.43, suggesting a potential downside of 8.90%. Given Rambus’ stronger consensus rating and higher probable upside, analysts plainly believe Rambus is more favorable than SCI Engineered Materials.
Institutional and Insider Ownership
88.5% of Rambus shares are owned by institutional investors. Comparatively, 27.6% of SCI Engineered Materials shares are owned by institutional investors. 0.8% of Rambus shares are owned by company insiders. Comparatively, 19.3% of SCI Engineered Materials shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
Rambus beats SCI Engineered Materials on 14 of the 15 factors compared between the two stocks.
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.
About SCI Engineered Materials
SCI Engineered Materials, Inc. engages in the manufacture and supply of materials for physical vapor deposition thin film applications in the United States. It offers ceramic targets, metal sputtering targets, and backing plates for use in semiconductors, thin film solar, flat panel displays, defense, aerospace, and photonics industries. The company’s materials are used to produce nano layers of metals and oxides for advanced material systems; and in applying decorative coatings for end uses, such as sink faucets to produce various electronic, photonic, and semiconductor products. It serves domestic and multi-national corporations, universities, and research institutions. The company was formerly known as Superconductive Components, Inc. and changed its name to SCI Engineered Materials, Inc. in 2007. SCI Engineered Materials, Inc. was incorporated in 1987 and is headquartered in Columbus, Ohio.
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