EMCORE (NASDAQ:EMKR – Get Free Report) and Arteris (NASDAQ:AIP – Get Free Report) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.
Valuation and Earnings
This table compares EMCORE and Arteris”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| EMCORE | $81.08 million | 0.35 | -$31.24 million | ($2.92) | -1.06 |
| Arteris | $61.31 million | 5.21 | -$33.64 million | ($0.82) | -9.28 |
Analyst Ratings
This is a breakdown of recent recommendations and price targets for EMCORE and Arteris, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| EMCORE | 0 | 1 | 0 | 0 | 2.00 |
| Arteris | 0 | 0 | 3 | 0 | 3.00 |
EMCORE presently has a consensus target price of $3.00, indicating a potential downside of 3.23%. Arteris has a consensus target price of $13.67, indicating a potential upside of 79.59%. Given Arteris’ stronger consensus rating and higher probable upside, analysts plainly believe Arteris is more favorable than EMCORE.
Profitability
This table compares EMCORE and Arteris’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| EMCORE | -42.00% | -24.27% | -12.59% |
| Arteris | -58.27% | -828.71% | -32.69% |
Insider & Institutional Ownership
65.7% of EMCORE shares are held by institutional investors. Comparatively, 64.4% of Arteris shares are held by institutional investors. 0.9% of EMCORE shares are held by company insiders. Comparatively, 29.1% of Arteris shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
EMCORE has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500. Comparatively, Arteris has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500.
Summary
EMCORE beats Arteris on 8 of the 14 factors compared between the two stocks.
About EMCORE
EMCORE Corporation, together with its subsidiaries, designs and manufactures fiber optic gyro, ring laser gyro, and micro electromechanical system-based inertial sensors and systems in the United States and internationally. It offers navigation system and inertial sensing products, such as gyroscopes and multi-axis sensors, inertial measurement units, fiber optic gyroscopes, quartz micro electromechanical systems, inertial navigation systems, tactical navigation, and naval and amphibious navigation, as well as radar positioning and pointing systems, and battlefield/artillery survey systems. The company sells its products through direct sales force, application engineers, third-party sales representatives, and distributors. EMCORE Corporation was founded in 1984 and is headquartered in Alhambra, 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.
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