Arteris (NASDAQ:AIP) vs. STMicroelectronics (NYSE:STM) Head to Head Survey

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

Earnings & Valuation

This table compares Arteris and STMicroelectronics’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arteris	$53.30 million	5.09	-$36.87 million	($1.03)	-6.84
STMicroelectronics	$17.29 billion	1.48	$4.21 billion	$3.90	7.27

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

Volatility and Risk

Arteris has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, STMicroelectronics has a beta of 1.58, suggesting that its stock price is 58% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Arteris and STMicroelectronics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arteris	0	1	3	0	2.75
STMicroelectronics	0	4	7	0	2.64

Arteris currently has a consensus target price of $13.00, suggesting a potential upside of 84.40%. STMicroelectronics has a consensus target price of $43.13, suggesting a potential upside of 52.04%. Given Arteris’ stronger consensus rating and higher probable upside, equities analysts plainly believe Arteris is more favorable than STMicroelectronics.

Institutional and Insider Ownership

64.4% of Arteris shares are owned by institutional investors. Comparatively, 5.1% of STMicroelectronics shares are owned by institutional investors. 33.7% of Arteris shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Arteris	-68.37%	-274.66%	-35.43%
STMicroelectronics	19.68%	18.18%	12.52%

Summary

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

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.

About STMicroelectronics

STMicroelectronics N.V., together with its subsidiaries, designs, develops, manufactures, and sells semiconductor products in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company operates through Automotive and Discrete Group; Analog, MEMS and Sensors Group; and Microcontrollers and Digital ICs Group segments. The Automotive and Discrete Group segment offers automotive integrated circuits (ICs), and discrete and power transistor products. The Analog, MEMS and Sensors Group segment provides industrial application-specific integrated circuits (ASICs) and application-specific standard products (ASSPs); general purpose analog products; custom analog ICs; wireless charging solutions; galvanic isolated gate drivers; low and high voltage amplifiers, comparators, and current-sense amplifiers; MasterGaN, a solution that integrates a silicon driver and GaN power transistors in a single package; wireline and wireless connectivity ICs; touch screen controllers; micro-electro-mechanical systems (MEMS) products, including sensors or actuators; and optical sensing solutions. The Microcontrollers and Digital ICs Group segment offers general purpose and secure microcontrollers; and radio frequency (RF) products. It also offers application-specific standard products for analog, digital and mixed-signal applications. In addition, the company provides assembly and other services. It sells its products through distributors and retailers, as well as through sales representatives. The company serves automotive, industrial, personal electronics and communications equipment, and computers and peripherals markets. STMicroelectronics N.V. was incorporated in 1987 and is headquartered in Geneva, Switzerland.