Head to Head Contrast: Adesto Technologies Corporation (IOTS) versus Rambus (NASDAQ:RMBS)

Rambus (NASDAQ: RMBS) and Adesto Technologies Corporation (NASDAQ:IOTS) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.

Profitability

This table compares Rambus and Adesto Technologies Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rambus 1.76% 9.28% 6.57%
Adesto Technologies Corporation -21.41% -44.81% -15.38%

Analyst Ratings

This is a breakdown of current ratings and price targets for Rambus and Adesto Technologies Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rambus 0 1 4 0 2.80
Adesto Technologies Corporation 0 0 2 1 3.33

Rambus currently has a consensus target price of $15.13, indicating a potential upside of 19.75%. Adesto Technologies Corporation has a consensus target price of $7.00, indicating a potential upside of 28.44%. Given Adesto Technologies Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Adesto Technologies Corporation is more favorable than Rambus.

Insider & Institutional Ownership

80.1% of Rambus shares are owned by institutional investors. Comparatively, 14.5% of Adesto Technologies Corporation shares are owned by institutional investors. 2.0% of Rambus shares are owned by insiders. Comparatively, 22.1% of Adesto Technologies Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Rambus has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Adesto Technologies Corporation has a beta of 2.36, indicating that its share price is 136% more volatile than the S&P 500.

Earnings and Valuation

This table compares Rambus and Adesto Technologies Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Rambus $379.48 million 3.64 $104.20 million $0.06 210.54
Adesto Technologies Corporation $48.23 million 1.79 -$6.70 million ($0.67) -8.13

Rambus has higher revenue and earnings than Adesto Technologies Corporation. Adesto Technologies Corporation 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 Adesto Technologies Corporation on 9 of the 14 factors compared between the two stocks.

About Rambus

Rambus Inc. (Rambus) produces hardware and software technologies. The Company’s segments include Memory and Interface Division (MID), which focuses the design, development, manufacturing through partnerships and licensing of technology and solutions that is related to memory and interfaces; Rambus Security Division (RSD), which focuses on the design, development and licensing of technologies for chip and system security, anti-counterfeiting, smart ticketing and mobile payments; Emerging Solutions Division (ESD), which encompasses its long-term research and development efforts in the area of emerging technologies, and Rambus Lighting Division (RLD), which focuses on the design, development and licensing of technologies for lighting. The Company collaborates with application-specific integrated circuit (ASIC) and System-on-Chip (SoC) designers, foundries, Internet protocol (IP) developers, processor companies, electronic design automation (EDA) companies and validation laboratories.

About Adesto Technologies Corporation

Adesto Technologies Corporation is a provider of application-specific and ultra-low power non-volatile memory products. The Company optimizes its non-volatile memory products for Internet of Things (IoT), applications, including current and next-generation Internet-connected devices in the consumer, industrial, medical and wearables markets. It operates in application-specific and feature-rich, ultra-low power non-volatile memory (NVM) products segment. It combines its non-volatile memory design capabilities with intellectual property and differentiated technology platforms to deliver products that manage the overall energy consumption of its customers’ systems and battery life. Its products feature embedded intelligence in a small form factor. It sells its products directly to original equipment manufacturers and original design manufacturers, respectively that manufacture products for its end customers.

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