Head to Head Comparison: Calix (NYSE:CALX) vs. Arteris (NASDAQ:AIP)

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

Institutional and Insider Ownership

64.4% of Arteris shares are owned by institutional investors. Comparatively, 98.1% of Calix shares are owned by institutional investors. 29.1% of Arteris shares are owned by company insiders. Comparatively, 16.9% of Calix shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Arteris has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500. Comparatively, Calix has a beta of 1.59, meaning that its stock price is 59% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Arteris and Calix, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arteris	1	1	4	0	2.50
Calix	1	2	5	1	2.67

Arteris presently has a consensus price target of $17.50, indicating a potential upside of 10.62%. Calix has a consensus price target of $79.50, indicating a potential upside of 45.99%. Given Calix’s stronger consensus rating and higher possible upside, analysts clearly believe Calix is more favorable than Arteris.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Arteris	-52.25%	-8,546.17%	-32.05%
Calix	-0.78%	-0.69%	-0.58%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arteris	$57.72 million	11.97	-$33.64 million	($0.83)	-19.06
Calix	$933.69 million	3.87	-$29.75 million	($0.12)	-453.79

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

Summary

Calix beats Arteris on 12 of the 15 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 Calix

Calix, Inc., together with its subsidiaries, engages in the provision of cloud and software platforms, and systems and services in the United States, rest of Americas, Europe, the Middle East, Africa, and the Asia Pacific. Its cloud and software platforms, and systems and services enable broadband service providers (BSPs) to provide a range of services. The company provides Calix Cloud platform, a role-based analytics platform comprising Calix Engagement Cloud, Calix Service Cloud, and Calix Operations Cloud, which are configurable to display role-based insights and enable BSPs to anticipate and target new revenue-generating services and applications through mobile application, such as CommandIQ for residents and CommandWorx for businesses; Calix Intelligent Access EDGE, an access network solution for automated and intelligent networks; and Calix Revenue EDGE, a premises solution for subscriber managed services. It also offers SmartLife managed services, including SmartHome managed services and applications to enhance, operate and secure the connected experience of subscribers in their home; SmartTown managed services that reimagine community Wi-Fi as a ubiquitous, secure, and managed experience across a BSP's footprint; and SmartBiz managed services that address the business networking and productivity needs of business owners with an all-in-one managed service. In addition, the company provides Wi-Fi systems under GigaSpire and GigaPro brands to be ready for deployment as a complete subscriber experience solution for BSP's residential and business subscribers. It offers its products through its direct sales force and resellers. The company was incorporated in 1999 and is headquartered in San Jose, California.