Critical Review: Rohm (OTCMKTS:ROHCY) vs. Lattice Semiconductor (NASDAQ:LSCC)

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

Earnings & Valuation

This table compares Rohm and Lattice Semiconductor”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	2.23	-$330.42 million	($0.63)	-25.87
Lattice Semiconductor	$509.40 million	23.51	$61.13 million	$0.20	437.70

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

Analyst Recommendations

This is a summary of recent recommendations for Rohm and Lattice Semiconductor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rohm	0	2	0	0	2.00
Lattice Semiconductor	0	1	12	1	3.00

Lattice Semiconductor has a consensus target price of $82.38, indicating a potential downside of 5.89%. Given Lattice Semiconductor’s stronger consensus rating and higher probable upside, analysts clearly believe Lattice Semiconductor is more favorable than Rohm.

Insider & Institutional Ownership

98.1% of Lattice Semiconductor shares are owned by institutional investors. 1.2% of Lattice Semiconductor shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Rohm has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Lattice Semiconductor has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rohm	-7.27%	-1.07%	-0.66%
Lattice Semiconductor	5.50%	4.73%	4.00%

Summary

Lattice Semiconductor beats Rohm on 14 of the 15 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 Lattice Semiconductor

Lattice Semiconductor Corporation, together with its subsidiaries, develops and sells semiconductor products in Asia, Europe, and the Americas. The company offers field programmable gate arrays that consist of four product families, including the Lattice Certus and ECP, Mach, iCE, and CrossLink. It also provides video connectivity application specific standard products. In addition, the company licenses its technology portfolio through standard IP and IP core licensing, patent monetization, and IP services. It sells its products directly to customers, and indirectly through a network of independent manufacturers' representatives and independent distributors. The company primarily serves original equipment manufacturers in the communications and computing, consumer, and industrial, and automotive markets. Lattice Semiconductor Corporation was incorporated in 1983 and is headquartered in Hillsboro, Oregon.