Analyzing Emeren Group (NYSE:SOL) & Rambus (NASDAQ:RMBS)

Emeren Group (NYSE:SOL) and Rambus (NASDAQ:RMBS) are both oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Valuation & Earnings

This table compares Emeren Group and Rambus’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Emeren Group	$107.55 million	0.84	-$3.19 million	($0.26)	-5.77
Rambus	$461.12 million	10.26	$333.90 million	$3.27	13.44

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

Profitability

This table compares Emeren Group and Rambus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Emeren Group	-12.70%	-0.89%	-0.69%
Rambus	48.31%	16.74%	13.70%

Insider and Institutional Ownership

44.1% of Emeren Group shares are held by institutional investors. Comparatively, 88.5% of Rambus shares are held by institutional investors. 18.0% of Emeren Group shares are held by insiders. Comparatively, 1.0% of Rambus shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Emeren Group has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500. Comparatively, Rambus has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Emeren Group and Rambus, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Emeren Group	2	0	2	1	2.40
Rambus	0	0	4	0	3.00

Emeren Group currently has a consensus target price of $5.38, indicating a potential upside of 258.33%. Rambus has a consensus target price of $77.75, indicating a potential upside of 76.91%. Given Emeren Group’s higher probable upside, analysts plainly believe Emeren Group is more favorable than Rambus.

Summary

Rambus beats Emeren Group on 11 of the 15 factors compared between the two stocks.

About Emeren Group

Emeren Group Ltd, through its subsidiaries, develops, builds, operates, and sells solar power projects. It owns and operates 3 gigawatt pipeline of projects and independent power producer assets. The company also develops community solar gardens; and sells project rights. In addition, it engages in engineering design; procurement of solar modules; balance-of-system components and other components; and construction contracting and management services. Further, the company generates and sells electricity. It operates in China, United States, UK, Spain, France, Poland, Italy, Hungary, and Internationally. The company was formerly known as ReneSola Ltd and changed its name to Emeren Group Ltd in January 2023. Emeren Group Ltd was founded in 2005 and is headquartered in Stamford, Connecticut.

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.