Critical Review: IQE (OTCMKTS:IQEPF) & Rakuten (OTCMKTS:RKUNY)

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IQE (OTCMKTS:IQEPF) and Rakuten (OTCMKTS:RKUNY) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, earnings, profitability and valuation.

Earnings & Valuation

This table compares IQE and Rakuten’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IQE $178.79 million 3.21 -$45.29 million ($0.03) -24.00
Rakuten $11.60 billion 1.32 -$293.37 million ($0.22) -48.59

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

Risk & Volatility

IQE has a beta of 3.35, indicating that its stock price is 235% more volatile than the S&P 500. Comparatively, Rakuten has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.

Insider & Institutional Ownership

0.2% of Rakuten shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for IQE and Rakuten, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IQE 0 2 1 0 2.33
Rakuten 0 0 0 0 N/A

Profitability

This table compares IQE and Rakuten’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
IQE N/A N/A N/A
Rakuten -4.50% -8.65% -0.67%

Summary

IQE beats Rakuten on 9 of the 11 factors compared between the two stocks.

About IQE

IQE plc develops, manufactures, and sells advanced semiconductor materials. The company operates through Wireless, Photonics, and CMOS++ segments. It manufactures compound semiconductor wafers or epiwafers using epitaxy process; and offers various products, including HBTs, pHEMTs, BiFETs/BiHEMTs, HFETs, LMHEMTs, LNHEMTs, and MESFETs for use in electronic devices, such as mobile phones, smartphones, mobile networks, Wi-Fi, smart metering, satellite navigation, and a plethora of connected devices. The company also provides a range of wafers comprising optical fiber communications optical storage solutions consisting of CDs and DVDs; optical networking solutions, including storage area networks; computing solutions, such as optical mouse devices and CD/DVD ROMs; office/professional solutions comprising laser printing/copying; and energy solutions consisting of solar cells for emitters and detectors, infrared, solar, optical interconnects, laser projection, gesture recognition, solid state lighting applications. In addition, it offers IR sensor, thermal imaging, night vision, and thermal photovoltaic products for infrared applications; and compound semiconductor solar cells and panels for utility scale electricity generation, satellite/space power generation, power generation, and power applications. Further, the company produces compound semiconductor on silicon wafers; and engineered substrates for next-generation microprocessors, and ultra high speed/density flash memory and MEMs devices. Additionally, it provides gallium nitride, a compound semiconductor, which includes a range of RF, photonic, and electronic properties. The company serves in the United States, rest of the Americas, France, Germany, Israel, the United Kingdom, rest of Europe, the Middle East, Africa, the People's Republic of China, Japan, Taiwan, and rest of the Asia-Pacific. IQE plc was founded in 1988 and is headquartered in Cardiff, the United Kingdom.

About Rakuten

Rakuten, Inc. offers Internet services in Japan, the Americas, Europe, rest of Asia, and internationally. It operates through three segments: Internet Services, FinTech, and Mobile segments. The Internet Services segment operates various e-commerce sites, including Rakuten Ichiba, an Internet shopping mall; Rakuten Travel, online travel and reservation website; Rakuten Rewards, a membership-based online cash-back site; Rakuten Fashion, an online brand fashion store; Rakuten Books, online book, CD, and DVD stores; Rakuten 24 daily necessities sales service; Rakuten Seiyu Netsuper, an online grocery delivery service; Rakuten Bic, an electronics e-commerce site; Rakuten Rebates, a point-back service; Rakuma, a consumer-to-consumer mobile e-commerce app; Rakuten Super Logistics, a distribution and fulfillment services; Rakuten Drone, Drone / UGV delivery service; Rakuten Gora, an online golf course reservations; and Rakuten Marketing. This segment also offers investment services, such as Rakuten Capita; and E-book services, including, Rakuten Kobo, as well as manages professional sports teams, such as Rakuten Eagles and Vissel Kobe. The FinTech segment provides Rakuten Card services; payment services, including Rakuten Pay; and asset-based financial services, such as Rakuten Bank, Rakuten Securities, and Rakuten Life and General Insurance. The Mobile segment provides Rakuten Mobile, which offers mobile virtual network operator services; Rakuten Viber, which provides messaging and VoIP services; Rakuten Communications; and Rakuten Energy, which provides electricity and energy-related services and solutions. It also offers Rakuten Farm, an agricultural service that provides the delivery of organic produce, as well as operates an online organic produce store. The company was formerly known as MDM, Inc. and changed its name to Rakuten, Inc. in June 1999. Rakuten, Inc. was founded in 1997 and is headquartered in Tokyo, Japan.

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