Arteris (NASDAQ:AIP) and MACOM Technology Solutions (NASDAQ:MTSI) Head to Head Comparison

MACOM Technology Solutions (NASDAQ:MTSI) and Arteris (NASDAQ:AIP) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for MACOM Technology Solutions and Arteris, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MACOM Technology Solutions	0	2	9	1	2.92
Arteris	0	1	3	0	2.75

MACOM Technology Solutions presently has a consensus price target of $130.91, indicating a potential upside of 10.86%. Arteris has a consensus price target of $12.75, indicating a potential upside of 75.38%. Given Arteris’ higher probable upside, analysts clearly believe Arteris is more favorable than MACOM Technology Solutions.

Risk & Volatility

MACOM Technology Solutions has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500. Comparatively, Arteris has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500.

Profitability

This table compares MACOM Technology Solutions and Arteris’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MACOM Technology Solutions	-13.05%	12.42%	7.84%
Arteris	-58.27%	-828.71%	-32.69%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MACOM Technology Solutions	$790.55 million	11.10	$76.86 million	($1.44)	-82.00
Arteris	$57.72 million	5.22	-$33.64 million	($0.87)	-8.36

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

Insider & Institutional Ownership

76.1% of MACOM Technology Solutions shares are held by institutional investors. Comparatively, 64.4% of Arteris shares are held by institutional investors. 16.3% of MACOM Technology Solutions shares are held by insiders. Comparatively, 33.7% of Arteris shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

MACOM Technology Solutions beats Arteris on 11 of the 15 factors compared between the two stocks.

About MACOM Technology Solutions

MACOM Technology Solutions Holdings, Inc., together with its subsidiaries, designs and manufactures analog semiconductor solutions for use in wireless and wireline applications across the radio frequency (RF), microwave, millimeter wave, and lightwave spectrum in the United States, China, Australia, Japan, Malaysia, Singapore, South Korea, Taiwan, Thailand, and internationally. The company offers a portfolio of standard and custom devices, including integrated circuits, multi-chip modules, diodes, amplifiers, switches and switch limiters, passive and active components, and subsystems. Its semiconductor products are electronic components that are incorporated in electronic systems, such as wireless base stations, high-capacity optical networks, radar, and medical systems and test and measurement applications. The company serves various markets comprising telecommunication that includes carrier infrastructure, which comprise long-haul/metro, 5G, and fiber-to-the-X/passive optical network; industrial and defense, including military and commercial radar, RF jammers, electronic countermeasures, and communication data links, as well as multi-market applications, such as industrial, medical, test and measurement, and scientific applications; and data centers. It sells its products through direct sales force, applications engineering staff, independent sales representatives, resellers, and distributors. The company was founded in 1950 and is headquartered in Lowell, Massachusetts.

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.