Critical Analysis: Semiconductor Manufacturing International (OTCMKTS:SMICY) vs. Rambus (NASDAQ:RMBS)



Semiconductor Manufacturing International (OTCMKTS:SMICY – Get Rating) and Rambus (NASDAQ:RMBS – Get Rating) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.

Valuation and Earnings

This table compares Semiconductor Manufacturing International and Rambus’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Semiconductor Manufacturing International $3.12 billion 5.18 $234.68 million $0.21 66.67
Rambus $328.30 million 7.98 $18.33 million ($0.42) -56.59

Semiconductor Manufacturing International has higher revenue and earnings than Rambus. Rambus is trading at a lower price-to-earnings ratio than Semiconductor Manufacturing International, indicating that it is currently the most affordable of the two stocks.

Risk & Volatility

Semiconductor Manufacturing International has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, Rambus has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.

Insider and Institutional Ownership

0.0% of Semiconductor Manufacturing International shares are held by institutional investors. Comparatively, 87.0% of Rambus shares are held by institutional investors. 1.5% of Rambus shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Semiconductor Manufacturing International and Rambus’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Semiconductor Manufacturing International 14.53% 4.00% 2.62%
Rambus -12.68% 17.27% 12.39%

Analyst Ratings

This is a summary of current recommendations and price targets for Semiconductor Manufacturing International and Rambus, as provided by MarketBeat.com.

Sell ​​Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Semiconductor Manufacturing International 0 0 1 0 3.00
Rambus 0 1 5 0 2.83

Rambus has a consensus price target of $31.33, indicating a potential upside of 31.82%. Given Rambus’ higher possible upside, analysts plainly believe Rambus is more favorable than Semiconductor Manufacturing International.

Summary

Rambus beats Semiconductor Manufacturing International on 8 of the 14 factors compared between the two stocks.

About Semiconductor Manufacturing International

(Get Rating)

Semiconductor Manufacturing International Corporation, an investment holding company, engages in the computer-aided design, manufacture, testing, packaging, and trading of integrated circuits (IC) and other semiconductor services. It is also involved in wafer manufacturing, wafer probing and bumping, technology development, design service, mask manufacturing, and assembly and final testing of integrated circuits; and sale of self-manufactured products. In addition, the company designs and manufactures semiconductor masks; and offers marketing related services. It operates in North America, China, Hong Kong, and Eurasia. The company serves integrated device manufacturers, fabless semiconductor companies, and system companies. Semiconductor Manufacturing International Corporation was founded in 2000 and is headquartered in Shanghai, the People’s Republic of China.

About Rambus

(Get Rating)

Rambus Inc. provides semiconductor products in the United States, Taiwan, South Korea, Japan, Europe, Canada, Singapore, China, and internationally. The company offers DDR memory interface chips, including DDR5, DDR4 and DDR3 memory interface chips to module manufacturers and OEMs; silicon IP comprising, interface and security IP solutions that move and protect data in advanced applications; and physical interface and digital controller IP to offer industry-leading, integrated memory and interconnect subsystems. It also provides a portfolio of patents that covers memory architecture, high-speed serial links, and security products. The company 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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