Arteris (NASDAQ:AIP) & Magnite (NASDAQ:MGNI) Critical Comparison

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Magnite and Arteris, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magnite	0	2	8	0	2.80
Arteris	1	1	3	0	2.40

Magnite presently has a consensus price target of $24.56, indicating a potential upside of 34.18%. Arteris has a consensus price target of $38.20, indicating a potential upside of 13.93%. Given Magnite’s stronger consensus rating and higher possible upside, research analysts clearly believe Magnite is more favorable than Arteris.

Valuation & Earnings

This table compares Magnite and Arteris”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Magnite	$713.95 million	3.67	$144.61 million	$1.04	17.60
Arteris	$70.58 million	21.93	-$34.75 million	($0.79)	-42.44

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

Institutional & Insider Ownership

73.4% of Magnite shares are owned by institutional investors. Comparatively, 64.4% of Arteris shares are owned by institutional investors. 3.2% of Magnite shares are owned by insiders. Comparatively, 23.3% of Arteris shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Magnite	21.96%	8.40%	2.40%
Arteris	-44.92%	N/A	-26.01%

Volatility and Risk

Magnite has a beta of 2.25, indicating that its stock price is 125% more volatile than the S&P 500. Comparatively, Arteris has a beta of 1.92, indicating that its stock price is 92% more volatile than the S&P 500.

Summary

Magnite beats Arteris on 12 of the 14 factors compared between the two stocks.

About Magnite

Magnite, Inc., together with its subsidiaries, operates an independent omni-channel sell-side advertising platform in the United States and internationally. The company’s platform offers applications and services for sellers of digital advertising inventory or publishers that own and operate CTV channels, applications, websites, and other digital media properties to manage and monetize their inventory; and applications and services for buyers, including advertisers, agencies, agency trading desks, and demand side platforms to buy digital advertising inventory, as well as an independent marketplace that connects buyers and sellers. It markets its solutions through sales teams that operate from various locations. The company was formerly known as The Rubicon Project, Inc. and changed name to Magnite, Inc. in July 2020. Magnite, Inc. was incorporated in 2007 and is headquartered in New York, New York.

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.