Contrasting Arteris (AIP) and Its Competitors

Arteris (NASDAQ:AIP) is one of 959 public companies in the “Software” industry, but how does it compare to its competitors? We will compare Arteris to related companies based on the strength of its dividends, earnings, risk, institutional ownership, profitability, valuation and analyst recommendations.

Earnings and Valuation

This table compares Arteris and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Arteris	$70.58 million	-$34.75 million	-21.36
Arteris Competitors	$1.79 billion	$382.68 million	112.26

Arteris’ competitors have higher revenue and earnings than Arteris. Arteris is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Arteris	-44.83%	-112.51%	-19.32%
Arteris Competitors	-599.60%	26.31%	-8.93%

Volatility and Risk

Arteris has a beta of 1.93, meaning that its share price is 93% more volatile than the S&P 500. Comparatively, Arteris’ competitors have a beta of 1.35, meaning that their average share price is 35% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Arteris and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arteris	1	0	6	0	2.71
Arteris Competitors	5842	21623	45017	1501	2.57

Arteris currently has a consensus target price of $35.86, suggesting a potential upside of 88.58%. As a group, “Software” companies have a potential upside of 28.75%. Given Arteris’ stronger consensus rating and higher possible upside, analysts plainly believe Arteris is more favorable than its competitors.

Institutional & Insider Ownership

64.4% of Arteris shares are held by institutional investors. Comparatively, 41.5% of shares of all “Software” companies are held by institutional investors. 23.3% of Arteris shares are held by company insiders. Comparatively, 19.9% of shares of all “Software” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Arteris beats its competitors on 7 of the 13 factors compared.

About Arteris

Arteris provides semiconductor intellectual property and software used to design and integrate systems-on-chip (SoCs). Its network-on-chip technology connects components such as processors, memory and specialized accelerators, helping chip designers manage data movement within complex devices. The company’s offerings include interconnect IP such as FlexNoC and Ncore, cache-coherent technology, and tools for SoC integration and design. These products are used in applications including automotive systems, artificial intelligence, consumer electronics, communications and computing.