Head-to-head review: CMC Materials (NASDAQ:CCMP) vs. Rambus (NASDAQ:RMBS)
Rambus (NASDAQ: RMBS – Get a rating) and CMC Materials (NASDAQ: CCMP – Get a rating) are both mid-size IT and technology companies, but what is the best investment? We’ll compare the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.
Insider and Institutional Ownership
87.0% of Rambus shares are held by institutional investors. By comparison, 93.7% of CMC Materials shares are held by institutional investors. 1.5% of Rambus shares are held by insiders. By comparison, 2.4% of CMC Materials shares are held by insiders. Strong institutional ownership indicates that endowments, hedge funds, and large fund managers believe a company will outperform the market over the long term.
Risk and Volatility
Rambus has a beta of 1.16, suggesting its stock price is 16% more volatile than the S&P 500. In comparison, CMC Materials has a beta of 1.14, suggesting its stock price is 14% more volatile. volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for Rambus and CMC Materials, as provided by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
Rambus currently has a consensus price target of $31.33, suggesting a potential upside of 45.20%. CMC Materials has a consensus price target of $197.25, suggesting a potential upside of 13.12%. Given Rambus’ stronger consensus rating and higher likely upside, equity research analysts clearly believe Rambus is more favorable than CMC Materials.
This table compares the net margins, return on equity and return on assets of Rambus and CMC Materials.
|Net margins||Return on equity||return on assets|
Valuation and benefits
This table compares the revenue, earnings per share (EPS), and valuation of Rambus and CMC Materials.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Rambus||$328.30 million||7.25||$18.33 million||($0.42)||-51.38|
|CMC materials||$1.20 billion||4.16||-$68.58 million||$3.82||45.65|
Rambus has higher profits, but lower revenues than CMC Materials. Rambus trades at a lower price-to-earnings ratio than CMC Materials, indicating that it is currently the more affordable of the two stocks.
Rambus Company Profile (Get a 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 including interface and security IP solutions that move and protect data in advanced applications; and physical interface and digital controller IP to deliver industry-leading integrated memory and interconnect subsystems. It also provides a patent portfolio covering 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.
CMC Materials Company Profile (Get a rating)
CMC Materials, Inc., together with its subsidiaries, provides consumable materials to semiconductor manufacturers and customers in pipelines and adjacent industries in North America, Asia, Europe, the Middle East, Africa and America from South. The Company operates in two segments, Electronic Materials and Performance Materials. The Electronic Materials segment develops, produces and sells chemical mechanical planarization (CMP) slurries for polishing various materials used in IC devices, including tungsten, dielectric materials, copper, tantalum and aluminum; and various materials used in the production of disk substrates and magnetic heads for hard disk drives; and CMP buffers, which are used in conjunction with sludges in the CMP process. This segment also offers sulfuric, phosphoric, nitric and hydrofluoric acids, as well as ammonium hydroxide, hydrogen peroxide, isopropyl alcohol, other specialty organic solvents and various chemical mixtures; and develops and manufactures consumable products for cleaning advanced probe boards and test sockets. The Performance Materials segment provides pipeline and industrial materials including polymer-based drag reduction agents for crude oil transmission, valve greases, cleaners and sealants, as well as related services and equipment; and routine and emergency maintenance and training services. This segment also offers precision polishing and metrology systems for advanced optical applications; and magneto-rheological polishing fluids, consumables and spare and replacement parts, as well as optical polishing and other customer support services; and engages in wood processing business. The company was formerly known as Cabot Microelectronics Corporation and changed its name to CMC Materials, Inc. in October 2020. CMC Materials, Inc. was incorporated in 1999 and is headquartered in Aurora, Illinois.
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