Head-To-Head Analysis: Rohm (OTCMKTS:ROHCY) & Ichor (NASDAQ:ICHR)

Rohm (OTCMKTS:ROHCY) and Ichor (NASDAQ:ICHR) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, analyst recommendations, valuation and profitability.

Institutional and Insider Ownership

94.8% of Ichor shares are owned by institutional investors. 1.9% of Ichor shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for Rohm and Ichor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rohm	0	2	0	0	2.00
Ichor	0	2	4	0	2.67

Ichor has a consensus target price of $32.67, indicating a potential upside of 43.59%. Given Ichor’s stronger consensus rating and higher possible upside, analysts clearly believe Ichor is more favorable than Rohm.

Profitability

This table compares Rohm and Ichor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rohm	-11.18%	-2.45%	-1.54%
Ichor	-1.84%	-0.63%	-0.45%

Earnings and Valuation

This table compares Rohm and Ichor”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rohm	$2.95 billion	1.73	-$330.42 million	($0.85)	-14.87
Ichor	$849.04 million	0.91	-$20.82 million	($0.48)	-47.40

Ichor has lower revenue, but higher earnings than Rohm. Ichor is trading at a lower price-to-earnings ratio than Rohm, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Rohm has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Ichor has a beta of 1.8, indicating that its share price is 80% more volatile than the S&P 500.

Summary

Ichor beats Rohm on 11 of the 14 factors compared between the two stocks.

About Rohm

ROHM Co., Ltd. manufactures and sells electronic components worldwide. The company operates through three segments: LSI, Semiconductor Devices, and Modules. It provides ICs comprising memory, amplifiers and linear, power management, motor/actuator drivers, resistors, clocks and timers, switches and multiplexers, logic, data converters, sensors and MEMS, display drivers, interfaces, wireless LSIs, audio and video products, speech synthesis LSI, and microcontrollers. The company also offers discrete semiconductor products, such as MOSFETs, bipolar transistors, and diodes; power devices, including power transistors and diodes, SiC power devices, IGBT, and IPM; modules, including optical modules, wireless communication modules, wireless charger modules, and print heads; and opto devices comprising LEDs, LED displays, laser diodes, and optical sensors, as well as foundry services, including thin-film piezoelectric MEMS, wafers, and WL-CSP. Its products are used in industry, automotive, consumer electronics, and telecommunications applications. The company was incorporated in 1940 and is headquartered in Kyoto, Japan.

About Ichor

Ichor Holdings, Ltd. engages in the design, engineering, and manufacture of fluid delivery subsystems and components for semiconductor capital equipment in the United States and internationally. It primarily offers gas and chemical delivery systems and subsystems that are used in the manufacturing of semiconductor devices. The company's gas delivery subsystems deliver, monitor, and control gases used in semiconductor manufacturing processes, such as etch and deposition; and chemical delivery subsystems blend and dispense the reactive liquid chemistries used in semiconductor manufacturing processes comprising chemical-mechanical planarization, electroplating, and cleaning. In addition, it manufactures precision machined components, weldments, electron beam, laser-welded components, precision vacuum and hydrogen brazing, surface treatment technologies, and other proprietary products. The company primarily markets its products to equipment OEMs in the semiconductor equipment market in Japan. Ichor Holdings, Ltd. was incorporated in 1999 and is headquartered in Fremont, California.