Rambus (NASDAQ:RMBS) vs. Impinj (NASDAQ:PI) Head-To-Head Analysis

Rambus (NASDAQ:RMBS) and Impinj (NASDAQ:PI) are both mid-cap technology companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.

Insider & Institutional Ownership

88.5% of Rambus shares are held by institutional investors. 0.7% of Rambus shares are held by insiders. Comparatively, 6.8% of Impinj shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Rambus and Impinj, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rambus	0	3	6	1	2.80
Impinj	1	3	7	0	2.55

Rambus presently has a consensus target price of $147.00, indicating a potential upside of 85.16%. Impinj has a consensus target price of $196.10, indicating a potential upside of 11.97%. Given Rambus’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Rambus is more favorable than Impinj.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rambus	33.40%	19.43%	17.59%
Impinj	-2.45%	6.65%	2.95%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rambus	$796.11 million	10.68	$230.46 million	$2.43	32.67
Impinj	$361.08 million	14.97	-$10.85 million	($0.33)	-530.71

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

Volatility and Risk

Rambus has a beta of 1.93, meaning that its stock price is 93% more volatile than the S&P 500. Comparatively, Impinj has a beta of 1.9, meaning that its stock price is 90% more volatile than the S&P 500.

Summary

Rambus beats Impinj on 12 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 Impinj

Impinj, Inc. operates a cloud connectivity platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Its platform wirelessly connects items and delivers data about the connected items to business and consumer applications. The company’s platform comprises endpoint ICs, a miniature radios-on-a-chip that attaches to a host item and includes a number to identify the item. Its platform also consists of systems products that consists of reader ICs, readers, and gateways to wirelessly provide power to and communicate bidirectionally with endpoint ICs on host items, as well as to read, write, authenticate, and engage the endpoint ICs on those items; and software and algorithms that enable its partners to solve enterprise business problems, such as retail self-checkout and loss prevention. The company primarily serves retail, supply chain and logistics, automotive, aviation, banking, datacenters, food, healthcare, industrial and manufacturing, linen and uniform tracking, sports, and travel industries through original equipment and device manufacturers, tag service bureaus, systems integrators, value-added resellers, independent software vendors, and other solution partners. Impinj, Inc. was incorporated in 2000 and is headquartered in Seattle, Washington.