Reviewing Arteris (NASDAQ:AIP) & Magnite (NASDAQ:MGNI)

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

Risk and Volatility

Arteris has a beta of 1.92, suggesting that its share price is 92% more volatile than the S&P 500. Comparatively, Magnite has a beta of 2.25, suggesting that its share price is 125% more volatile than the S&P 500.

Insider & Institutional Ownership

64.4% of Arteris shares are owned by institutional investors. Comparatively, 73.4% of Magnite shares are owned by institutional investors. 23.3% of Arteris shares are owned by company insiders. Comparatively, 3.2% of Magnite shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Arteris and Magnite, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arteris	1	1	3	0	2.40
Magnite	0	2	8	0	2.80

Arteris currently has a consensus price target of $38.20, indicating a potential upside of 31.91%. Magnite has a consensus price target of $24.56, indicating a potential upside of 24.65%. Given Arteris’ higher possible upside, research analysts clearly believe Arteris is more favorable than Magnite.

Earnings & Valuation

This table compares Arteris and Magnite”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arteris	$70.58 million	18.94	-$34.75 million	($0.79)	-36.66
Magnite	$713.95 million	3.95	$144.61 million	$1.04	18.94

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Arteris	-44.92%	N/A	-26.01%
Magnite	21.96%	8.40%	2.40%

Summary

Magnite beats Arteris on 11 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 Magnite

Magnite, Inc., together with its subsidiaries, operates an independent omni-channel sell-side advertising platform in the United States and internationally. The company’s platform offers applications and services for sellers of digital advertising inventory or publishers that own and operate CTV channels, applications, websites, and other digital media properties to manage and monetize their inventory; and applications and services for buyers, including advertisers, agencies, agency trading desks, and demand side platforms to buy digital advertising inventory, as well as an independent marketplace that connects buyers and sellers. It markets its solutions through sales teams that operate from various locations. The company was formerly known as The Rubicon Project, Inc. and changed name to Magnite, Inc. in July 2020. Magnite, Inc. was incorporated in 2007 and is headquartered in New York, New York.