Head-To-Head Comparison: Rambus (NASDAQ:RMBS) & indie Semiconductor (NASDAQ:INDI)

Rambus (NASDAQ:RMBS) and indie Semiconductor (NASDAQ:INDI) 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, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Insider and Institutional Ownership

88.5% of Rambus shares are held by institutional investors. Comparatively, 67.7% of indie Semiconductor shares are held by institutional investors. 1.0% of Rambus shares are held by company insiders. Comparatively, 5.6% of indie Semiconductor shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Rambus and indie Semiconductor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rambus	34.23%	18.01%	14.99%
indie Semiconductor	-62.64%	-27.25%	-14.78%

Volatility and Risk

Rambus has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, indie Semiconductor has a beta of 2.2, indicating that its share price is 120% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Rambus and indie Semiconductor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rambus	0	0	6	1	3.14
indie Semiconductor	0	1	6	0	2.86

Rambus currently has a consensus price target of $75.00, suggesting a potential upside of 9.95%. indie Semiconductor has a consensus price target of $6.08, suggesting a potential upside of 29.99%. Given indie Semiconductor’s higher possible upside, analysts plainly believe indie Semiconductor is more favorable than Rambus.

Valuation and Earnings

This table compares Rambus and indie Semiconductor”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rambus	$556.62 million	13.16	$179.82 million	$1.92	35.53
indie Semiconductor	$216.68 million	4.59	-$132.60 million	($0.75)	-6.24

Rambus has higher revenue and earnings than indie Semiconductor. indie Semiconductor 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 indie Semiconductor on 11 of the 14 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 indie Semiconductor

indie Semiconductor, Inc. provides automotive semiconductors and software solutions for advanced driver assistance systems, autonomous vehicle, in-cabin, connected car, and electrification applications in the United States, South America, rest of North America, Greater China, South Korea, rest of the Asia Pacific, and Europe. It offers ultrasonic sensors for parking assist and systems; radar sensors for audio assistance and reverse information; front cameras for vehicle detection, collision avoidance, and sign reading; and side/inside cameras for blind spot and lane change assist, and driver behavior monitoring. The company also provides LiDAR for distance, speed, and obstacle detection, collision avoidance, and emergency brake system; and long range RADAR for audio assistance, obstacle detection, and ACC stop and go. In addition, it designs and manufactures photonic components on various technology platforms, including fiber Bragg gratings, low-noise lasers, athermal and tunable packaging, photonic integration, and low-noise and high-speed electronics. The company was founded in 2007 and is headquartered in Aliso Viejo, California.