Head-To-Head Comparison: Arteris (NASDAQ:AIP) and Nutanix (NASDAQ:NTNX)

Nutanix (NASDAQ:NTNX) and Arteris (NASDAQ:AIP) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Profitability

This table compares Nutanix and Arteris’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nutanix	52.81%	-90.13%	9.09%
Arteris	-46.70%	-295.96%	-22.26%

Risk and Volatility

Nutanix has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, Arteris has a beta of 1.9, indicating that its share price is 90% more volatile than the S&P 500.

Insider and Institutional Ownership

85.3% of Nutanix shares are owned by institutional investors. Comparatively, 64.4% of Arteris shares are owned by institutional investors. 2.4% of Nutanix shares are owned by insiders. Comparatively, 23.3% of Arteris shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Nutanix and Arteris”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nutanix	$2.85 billion	6.85	$1.51 billion	$5.16	14.01
Arteris	$70.58 million	17.17	-$34.75 million	($0.87)	-28.34

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Nutanix and Arteris, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nutanix	0	9	9	0	2.50
Arteris	1	0	6	0	2.71

Nutanix presently has a consensus price target of $73.07, suggesting a potential upside of 1.08%. Arteris has a consensus price target of $39.43, suggesting a potential upside of 59.89%. Given Arteris’ stronger consensus rating and higher possible upside, analysts plainly believe Arteris is more favorable than Nutanix.

Summary

Nutanix beats Arteris on 9 of the 14 factors compared between the two stocks.

About Nutanix

Nutanix, Inc. engages in the provision of a cloud platform leveraging web-scale engineering and consumer-grade design. It operates through the following geographic segments: United States, Europe, the Middle East, Africa, Asia Pacific, and Other Americas. The firm also provides software solutions and cloud services to customers’ enterprise infrastructure. The company was founded by Dheeraj Pandey, Ajeet Singh, and Mohit Aron in 2009 and is headquartered in San Jose, CA.

About Arteris

Arteris, Inc. provides semiconductor interconnect intellectual property (IP) and System-on-Chip (Soc) Integration Automation software solutions (SIA) in the Americas, the Asia Pacific, Europe, and the Middle East. The company develops, licenses, and supports the on-chip interconnect fabric technology used in Soc designs and Network-on-Chip (NoC) interconnect IP. Its products include FlexNoC and FlexWay silicon-proven interconnect IP products; Ncore, a silicon-proven and cache coherent interconnect IP product that provides scalable, configurable, and area efficient characteristics; and CodaCache, a last-level cache semiconductor IP product. The company also offers SIA products comprising Magillem Connectivity that shortens and streamlines the SoC integration process; and Magillem Registers and CSRCompiler that addresses hardware-software integration challenges for SoCs. The company serves semiconductor manufacturers, original equipment manufacturers, hyperscale system houses, semiconductor design houses, and other producers of electronic systems. Arteris, Inc. was founded in 2003 and is headquartered in Campbell, California.