Arteris (NASDAQ:AIP – Get Free Report) and Photronics (NASDAQ:PLAB – Get Free Report) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.
Valuation & Earnings
This table compares Arteris and Photronics’ gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Arteris | $53.67 million | 5.87 | -$36.87 million | ($1.03) | -7.97 |
Photronics | $892.08 million | 2.04 | $125.49 million | $2.23 | 12.91 |
Photronics has higher revenue and earnings than Arteris. Arteris is trading at a lower price-to-earnings ratio than Photronics, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Institutional & Insider Ownership
64.4% of Arteris shares are owned by institutional investors. Comparatively, 88.4% of Photronics shares are owned by institutional investors. 36.1% of Arteris shares are owned by company insiders. Comparatively, 3.9% of Photronics shares are owned by company 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 Arteris and Photronics’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Arteris | -69.70% | -170.93% | -35.11% |
Photronics | 15.34% | 10.37% | 8.69% |
Analyst Recommendations
This is a summary of current ratings and target prices for Arteris and Photronics, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Arteris | 0 | 0 | 4 | 0 | 3.00 |
Photronics | 0 | 1 | 0 | 0 | 2.00 |
Arteris currently has a consensus target price of $14.50, suggesting a potential upside of 76.61%. Photronics has a consensus target price of $21.00, suggesting a potential downside of 27.03%. Given Arteris’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Arteris is more favorable than Photronics.
Summary
Photronics beats Arteris on 9 of the 14 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 Photronics
Photronics, Inc., together with its subsidiaries, engages in the manufacture and sale of photomask products and services in the United States, Taiwan, China, Korea, Europe, and internationally. It offers photomasks that are used in the manufacture of integrated circuits and flat panel displays (FPDs); and to transfer circuit patterns onto semiconductor wafers, and FDP substrates. The company offers electrical and optical components. It sells its products to semiconductor and FPD manufacturers, designers, and foundries, as well as to other high-performance electronics manufacturers through its sales personnel and customer service representatives. The company was formerly known as Photronic Labs, Inc. and changed its name to Photronics, Inc. in 1990. Photronics, Inc. was incorporated in 1969 and is based in Brookfield, Connecticut.
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