Critical Review: ams-OSRAM (OTCMKTS:AMSSY) vs. Rohm (OTCMKTS:ROHCY)

Rohm (OTCMKTS:ROHCY) and ams-OSRAM (OTCMKTS:AMSSY) are both mid-cap technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, analyst recommendations and institutional ownership.

Dividends

Rohm pays an annual dividend of $0.18 per share and has a dividend yield of 0.8%. ams-OSRAM pays an annual dividend of $0.13 per share and has a dividend yield of 1.3%. Rohm pays out -7.0% of its earnings in the form of a dividend. ams-OSRAM pays out -6.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a summary of current recommendations and price targets for Rohm and ams-OSRAM, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rohm	0	1	1	0	2.50
ams-OSRAM	0	2	1	0	2.33

Volatility & Risk

Rohm has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500. Comparatively, ams-OSRAM has a beta of 1.79, suggesting that its stock price is 79% more volatile than the S&P 500.

Profitability

This table compares Rohm and ams-OSRAM’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rohm	-29.85%	4.39%	2.70%
ams-OSRAM	-9.74%	-7.58%	-1.01%

Earnings and Valuation

This table compares Rohm and ams-OSRAM”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rohm	$3.20 billion	2.64	-$1.05 billion	($2.57)	-8.51
ams-OSRAM	$3.76 billion	0.54	-$147.08 million	($1.91)	-5.29

ams-OSRAM has higher revenue and earnings than Rohm. Rohm is trading at a lower price-to-earnings ratio than ams-OSRAM, indicating that it is currently the more affordable of 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 ams-OSRAM

ams-OSRAM AG designs, manufactures, and sells LED and optical sensor solutions in Europe, the Middle East, Africa, the Americas, and Asia/Pacific. The company operates in Semiconductors and Lamps & Systems segments. The Semiconductors segment offers semiconductor-based products and solutions, such as high-performance LEDs, lasers, and optical sensors for automotive, consumer, and industrial and medical technology end markets. The Lamps & Systems segment provides lamps and lighting systems for the automotive, industrial, and medical end markets. The company was formerly known as ams AG and changed its name to ams-OSRAM AG in January 2022. ams-OSRAM AG is headquartered in Premstätten, Austria.