Comparing SPI Energy (NASDAQ:SPI) & Arteris (NASDAQ:AIP)

SPI Energy (NASDAQ:SPI) and Arteris (NASDAQ:AIP) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Institutional and Insider Ownership

1.7% of SPI Energy shares are owned by institutional investors. Comparatively, 64.4% of Arteris shares are owned by institutional investors. 24.6% of SPI Energy shares are owned by company insiders. Comparatively, 36.1% of Arteris shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SPI Energy	$209.53 million	0.08	-$33.42 million	($0.88)	-0.58
Arteris	$53.67 million	5.11	-$36.87 million	($1.04)	-6.97

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SPI Energy	-11.77%	-167.64%	-9.56%
Arteris	-68.70%	-150.71%	-34.46%

Analyst Recommendations

This is a summary of recent recommendations and price targets for SPI Energy and Arteris, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SPI Energy	0	0	1	0	3.00
Arteris	0	0	4	0	3.00

SPI Energy presently has a consensus price target of $6.00, indicating a potential upside of 1,076.47%. Arteris has a consensus price target of $16.00, indicating a potential upside of 120.69%. Given SPI Energy’s higher possible upside, research analysts plainly believe SPI Energy is more favorable than Arteris.

Risk and Volatility

SPI Energy has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, Arteris has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.

Summary

SPI Energy beats Arteris on 7 of the 13 factors compared between the two stocks.

About SPI Energy

SPI Energy Co., Ltd. provides photovoltaic and electric vehicle (EV) solutions for business, residential, government, and utility customers and investors in Australia, Japan, Italy, the United States, the United Kingdom, and Greece. The company offers engineering, procurement, and construction services to independent power developers and producers, and commercial and industrial companies. It also develops, owns, and operates solar projects that sell electricity to power companies and other electricity off-takers, including government-owned utility companies. In addition, the company sells self-assembled solar modules, forklifts, pre-development solar projects, component and charging stations, as well as offers shipping, delivery, engineering, and maintenance services. As of April, 2022, it owned and operated 17.51 megawatts of solar projects. The company is headquartered in Sacramento, California.

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.