Contrasting Riskified (NYSE:RSKD) and Arteris (NASDAQ:AIP)

Arteris (NASDAQ:AIP) and Riskified (NYSE:RSKD) are both small-cap technology companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, institutional ownership, analyst recommendations, earnings and profitability.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Arteris and Riskified, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arteris	1	0	6	0	2.71
Riskified	2	3	2	0	2.00

Arteris presently has a consensus target price of $39.43, indicating a potential upside of 64.92%. Riskified has a consensus target price of $6.50, indicating a potential downside of 16.82%. Given Arteris’ stronger consensus rating and higher probable upside, research analysts clearly believe Arteris is more favorable than Riskified.

Risk & Volatility

Arteris has a beta of 1.91, suggesting that its stock price is 91% more volatile than the S&P 500. Comparatively, Riskified has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500.

Earnings & Valuation

This table compares Arteris and Riskified”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arteris	$70.58 million	16.65	-$34.75 million	($0.87)	-27.48
Riskified	$344.64 million	3.36	-$27.57 million	($0.11)	-71.04

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Arteris	-46.70%	-295.96%	-22.26%
Riskified	-4.23%	-3.93%	-2.79%

Institutional & Insider Ownership

64.4% of Arteris shares are held by institutional investors. Comparatively, 59.0% of Riskified shares are held by institutional investors. 23.3% of Arteris shares are held by company insiders. Comparatively, 17.4% of Riskified shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Arteris beats Riskified on 8 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 Riskified

Riskified Ltd., together with its subsidiaries, develops and offers an e-commerce risk management platform that allows online merchants to create trusted relationships with consumers in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and the Americas. It offers Chargeback Guarantee that ensures the legitimacy of merchants' online orders; Policy Protect, a machine learning solution designed to detect and prevent refund and returns policy abuse in real-time; Account Secure, a solution that cross-checks every login attempt; Dispute Resolve, which is used to compile submissions for fraud and non-fraud related chargeback issues; and PSD2 Optimize that helps merchants avoid bank authorization failures and abandoned shopping carts. The company serves direct-to-consumer brands, online-only retailers, omnichannel retailers, online marketplaces, and e-commerce service providers in various industries, such as payments, money transfer and crypto, tickets and travel, electronics, home, and fashion and luxury goods. Riskified Ltd. was incorporated in 2012 and is headquartered in Tel Aviv, Israel.