Digital Turbine (NASDAQ:APPS – Get Free Report) and Arteris (NASDAQ:AIP – Get Free Report) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations and valuation.
Risk & Volatility
Digital Turbine has a beta of 2.26, indicating that its share price is 126% more volatile than the S&P 500. Comparatively, Arteris has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500.
Valuation and Earnings
This table compares Digital Turbine and Arteris”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Digital Turbine | $490.51 million | 1.01 | -$92.10 million | ($0.48) | -8.65 |
| Arteris | $57.72 million | 11.30 | -$33.64 million | ($0.83) | -17.99 |
Arteris has lower revenue, but higher earnings than Digital Turbine. Arteris is trading at a lower price-to-earnings ratio than Digital Turbine, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Digital Turbine and Arteris’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Digital Turbine | -8.93% | 21.26% | 4.17% |
| Arteris | -52.25% | N/A | -32.05% |
Analyst Recommendations
This is a summary of recent ratings and target prices for Digital Turbine and Arteris, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Digital Turbine | 1 | 2 | 1 | 0 | 2.00 |
| Arteris | 1 | 1 | 3 | 0 | 2.40 |
Digital Turbine currently has a consensus target price of $7.75, suggesting a potential upside of 86.75%. Arteris has a consensus target price of $17.50, suggesting a potential upside of 17.21%. Given Digital Turbine’s higher possible upside, analysts clearly believe Digital Turbine is more favorable than Arteris.
Institutional and Insider Ownership
63.7% of Digital Turbine shares are held by institutional investors. Comparatively, 64.4% of Arteris shares are held by institutional investors. 6.1% of Digital Turbine shares are held by insiders. Comparatively, 29.1% of Arteris shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
Digital Turbine beats Arteris on 8 of the 14 factors compared between the two stocks.
About Digital Turbine
Digital Turbine, Inc., through its subsidiaries, operates a mobile growth platform for advertisers, publishers, carriers, and device original equipment manufacturers (OEMs). The company operates through two segments, On Device Solutions and App Growth Platform. Its application media platform delivers mobile applications to various publishers, carriers, OEMs, and devices; and content media platform offers news, weather, sports, and other content, as well as programmatic advertising and media content delivery services, and sponsored and editorial content media. The company also provides direct campaign management products, such as the DT DSP and DT Offer Wall; ad monetization solutions allow mobile app publishers and developers to monetize their monthly active users via display, native, and video advertising; brands and agencies runs mobile brand-awareness campaigns on the direct mobile app inventory; and app developers and other performance-focused advertisers execute mobile user acquisition campaigns for their apps and products. It operates in the United States, Canada, Europe, the Middle East, Africa, the Asia Pacific, China, Mexico, Central America, and South America. The company is headquartered in Austin, Texas.
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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