Contrasting Rambus (NASDAQ:RMBS) & FTC Solar (NASDAQ:FTCI)

FTC Solar (NASDAQ:FTCI) and Rambus (NASDAQ:RMBS) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.

Earnings and Valuation

This table compares FTC Solar and Rambus”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FTC Solar	$127.00 million	0.34	-$50.29 million	($3.80)	-0.89
Rambus	$556.62 million	12.05	$333.90 million	$1.66	37.93

Rambus has higher revenue and earnings than FTC Solar. FTC Solar is trading at a lower price-to-earnings ratio than Rambus, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

FTC Solar has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, Rambus has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for FTC Solar and Rambus, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FTC Solar	0	3	2	0	2.40
Rambus	0	0	7	1	3.13

FTC Solar currently has a consensus price target of $8.13, suggesting a potential upside of 140.38%. Rambus has a consensus price target of $77.29, suggesting a potential upside of 22.75%. Given FTC Solar’s higher possible upside, equities research analysts clearly believe FTC Solar is more favorable than Rambus.

Institutional and Insider Ownership

45.4% of FTC Solar shares are held by institutional investors. Comparatively, 88.5% of Rambus shares are held by institutional investors. 22.6% of FTC Solar shares are held by company insiders. Comparatively, 1.0% of Rambus shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FTC Solar	-82.90%	-98.67%	-44.11%
Rambus	32.31%	17.47%	14.45%

Summary

Rambus beats FTC Solar on 13 of the 15 factors compared between the two stocks.

About FTC Solar

FTC Solar, Inc. engages in the provision of solar tracker systems, software, and engineering services in the United States, Asia, Europe, the Middle East, North Africa, South Africa, and Australia. The company offers a self-powered, two-panel in-portrait, and single-axis tracker solution under the Voyager brand name; and a one module-in-portrait solar tracker solution under the Pioneer brand name. Its customers include project developers and solar asset owners, as well as engineering, procurement, and construction contractors that design and build solar energy projects. The company was incorporated in 2017 and is headquartered in Austin, Texas.

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.