Head-To-Head Analysis: Rohm (OTCMKTS:ROHCY) vs. Lattice Semiconductor (NASDAQ:LSCC)

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

Institutional and Insider Ownership

98.1% of Lattice Semiconductor shares are owned by institutional investors. 1.8% of Lattice Semiconductor shares are owned by company 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

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

Analyst Recommendations

This is a breakdown of recent recommendations for Lattice Semiconductor and Rohm, as reported by MarketBeat.

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

Lattice Semiconductor presently has a consensus target price of $82.38, indicating a potential downside of 4.66%. Given Lattice Semiconductor’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Lattice Semiconductor is more favorable than Rohm.

Profitability

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

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

Valuation & Earnings

This table compares Lattice Semiconductor and Rohm”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lattice Semiconductor	$509.40 million	23.20	$61.13 million	$0.20	432.05
Rohm	$2.95 billion	2.23	-$330.42 million	($0.63)	-25.87

Lattice Semiconductor has higher earnings, but lower revenue 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.

Summary

Lattice Semiconductor beats Rohm on 14 of the 15 factors compared between the two stocks.

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.

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.