Critical Comparison: Arteris (NASDAQ:AIP) and Ifan Financial (OTCMKTS:IFAN)

Arteris (NASDAQ:AIP) and Ifan Financial (OTCMKTS:IFAN) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Arteris	-44.92%	N/A	-26.01%
Ifan Financial	N/A	N/A	N/A

Earnings and Valuation

This table compares Arteris and Ifan Financial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arteris	$70.58 million	22.42	-$34.75 million	($0.79)	-43.39
Ifan Financial	N/A	N/A	N/A	N/A	N/A

Ifan Financial has lower revenue, but higher earnings than Arteris.

Risk & Volatility

Arteris has a beta of 1.98, meaning that its share price is 98% more volatile than the S&P 500. Comparatively, Ifan Financial has a beta of -0.16, meaning that its share price is 116% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Arteris and Ifan Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arteris	1	1	2	0	2.25
Ifan Financial	0	0	0	0	0.00

Arteris presently has a consensus target price of $37.75, suggesting a potential upside of 10.12%. Given Arteris’ stronger consensus rating and higher probable upside, analysts clearly believe Arteris is more favorable than Ifan Financial.

Summary

Arteris beats Ifan Financial on 7 of the 9 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 Ifan Financial

IFAN Financial, Inc., together with its subsidiaries, designs, develops, and distributes software to enable mobile payments. Its products include the ability to use a debit card and corresponding PIN number while purchasing online on a mobile phone, tablet, or computer, as well as peer-to-peer cash transfers. It has a portfolio of solutions, including mobile optimized white label' solutions with the ability to facilitate on demand payments, autopay, proximity payments and marketing, and a proprietary linked debit cards. The company's white label' enterprise solutions offer mobile banking products and mobile commerce products, as well as white label mobile wallet and payment solutions. It also provides prepaid card programs for businesses and consumers; and traditional financial services for merchants separate from the Platform or using select features from it. The company was formerly known as Infantly Available, Inc. and changed its name to IFAN Financial, Inc. in September 2014. IFAN Financial, Inc. was founded in 2010 and is based in San Diego, California.