Comparing FTC Solar (NASDAQ:FTCI) and Rambus (NASDAQ:RMBS)

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

Analyst Recommendations

This is a breakdown of current ratings for Rambus and FTC Solar, as reported by MarketBeat.

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

Rambus presently has a consensus target price of $77.29, indicating a potential upside of 23.46%. FTC Solar has a consensus target price of $8.13, indicating a potential upside of 153.12%. Given FTC Solar’s higher probable upside, analysts plainly believe FTC Solar is more favorable than Rambus.

Volatility & Risk

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

Profitability

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

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

Institutional & Insider Ownership

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rambus	$556.62 million	11.99	$333.90 million	$1.66	37.71
FTC Solar	$127.00 million	0.32	-$50.29 million	($3.80)	-0.84

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.

Summary

Rambus beats FTC Solar on 13 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 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.