Critical Analysis: Rumble (NASDAQ:RUM) & Arteris (NASDAQ:AIP)

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

Valuation & Earnings

This table compares Rumble and Arteris”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rumble	$95.49 million	34.43	-$338.36 million	($1.43)	-5.29
Arteris	$57.72 million	6.78	-$33.64 million	($0.82)	-11.20

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rumble	-289.37%	-97.99%	-62.66%
Arteris	-52.41%	-8,546.17%	-31.56%

Analyst Ratings

This is a summary of current recommendations for Rumble and Arteris, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rumble	0	1	1	0	2.50
Arteris	0	0	3	0	3.00

Rumble currently has a consensus target price of $14.00, suggesting a potential upside of 84.94%. Arteris has a consensus target price of $15.00, suggesting a potential upside of 63.40%. Given Rumble’s higher possible upside, research analysts plainly believe Rumble is more favorable than Arteris.

Risk and Volatility

Rumble has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500. Comparatively, Arteris has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500.

Institutional & Insider Ownership

26.2% of Rumble shares are owned by institutional investors. Comparatively, 64.4% of Arteris shares are owned by institutional investors. 45.1% of Rumble shares are owned by company insiders. Comparatively, 29.1% of Arteris shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Arteris beats Rumble on 8 of the 14 factors compared between the two stocks.

About Rumble

Rumble Inc. operates video sharing platforms in the United States, Canada, and internationally. The company operates rumble.com, a free-to-use video sharing and livestreaming platform where users can subscribe to channels to stay in touch with creators, and access video on-demand (VOD) and live content streamed by creators. It also operates locals.com, a platform where users can access free content and purchase subscriptions to support creators and access exclusive content in creator communities; Rumble Streaming Marketplace, a patent-pending application designed to enable a first-of-its-kind livestreaming and monetization service for creators; and Rumble Advertising Center (RAC), an online advertising management exchange. The company was founded in 2013 and is headquartered in Longboat Key, Florida.

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.