ACM Research (NASDAQ:ACMR – Get Free Report) and Rambus (NASDAQ:RMBS – Get Free Report) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation and analyst recommendations.
Profitability
This table compares ACM Research and Rambus’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ACM Research | 14.48% | 4.08% | 2.80% |
| Rambus | 31.69% | 17.89% | 16.21% |
Insider and Institutional Ownership
66.7% of ACM Research shares are held by institutional investors. Comparatively, 88.5% of Rambus shares are held by institutional investors. 24.4% of ACM Research shares are held by company insiders. Comparatively, 0.7% of Rambus shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ACM Research | $901.31 million | 4.65 | $94.08 million | $2.10 | 30.87 |
| Rambus | $707.63 million | 15.05 | $230.46 million | $2.18 | 45.03 |
Rambus has lower revenue, but higher earnings than ACM Research. ACM Research 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
ACM Research has a beta of 2.09, indicating that its stock price is 109% more volatile than the S&P 500. Comparatively, Rambus has a beta of 1.85, indicating that its stock price is 85% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations for ACM Research and Rambus, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ACM Research | 0 | 1 | 5 | 0 | 2.83 |
| Rambus | 0 | 4 | 6 | 0 | 2.60 |
ACM Research currently has a consensus price target of $122.75, suggesting a potential upside of 89.34%. Rambus has a consensus price target of $145.88, suggesting a potential upside of 48.59%. Given ACM Research’s stronger consensus rating and higher possible upside, research analysts clearly believe ACM Research is more favorable than Rambus.
Summary
Rambus beats ACM Research on 8 of the 14 factors compared between the two stocks.
About ACM Research
ACM Research, Inc., together with its subsidiaries, develops, manufactures, and sells single-wafer wet cleaning equipment for enhancing the manufacturing process and yield for integrated chips worldwide. It offers space alternated phase shift technology for flat and patterned wafer surfaces, which employs alternating phases of megasonic waves to deliver megasonic energy in a uniform manner on a microscopic level; timely energized bubble oscillation technology for patterned wafer surfaces at advanced process nodes, which provides cleaning for 2D and 3D patterned wafers; Tahoe technology for delivering cleaning performance using less sulfuric acid and hydrogen peroxide; and electro-chemical plating technology for advanced metal plating. The company markets and sells its products under the SAPS, TEBO, ULTRA C, ULTRA Fn, Ultra ECP, Ultra ECP map, and Ultra ECP ap trademarks through direct sales force and third-party representatives. ACM Research, Inc. was incorporated in 1998 and is headquartered in Fremont, California.
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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