Arteris (NASDAQ:AIP – Get Free Report) and Zoom Communications (NASDAQ:ZM – Get Free Report) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, analyst recommendations, valuation, profitability, risk and institutional ownership.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Arteris and Zoom Communications, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Arteris | 1 | 1 | 2 | 0 | 2.25 |
| Zoom Communications | 0 | 12 | 15 | 0 | 2.56 |
Arteris presently has a consensus target price of $37.75, suggesting a potential upside of 1.51%. Zoom Communications has a consensus target price of $109.33, suggesting a potential upside of 3.92%. Given Zoom Communications’ stronger consensus rating and higher probable upside, analysts plainly believe Zoom Communications is more favorable than Arteris.
Risk and Volatility
Profitability
This table compares Arteris and Zoom Communications’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Arteris | -44.92% | N/A | -26.01% |
| Zoom Communications | 41.99% | 11.87% | 9.69% |
Earnings & Valuation
This table compares Arteris and Zoom Communications”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Arteris | $70.58 million | 24.33 | -$34.75 million | ($0.79) | -47.08 |
| Zoom Communications | $4.87 billion | 6.34 | $1.90 billion | $6.81 | 15.45 |
Zoom Communications has higher revenue and earnings than Arteris. Arteris is trading at a lower price-to-earnings ratio than Zoom Communications, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
64.4% of Arteris shares are held by institutional investors. Comparatively, 66.5% of Zoom Communications shares are held by institutional investors. 29.1% of Arteris shares are held by company insiders. Comparatively, 11.5% of Zoom Communications shares are held 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
Zoom Communications beats Arteris on 11 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 Zoom Communications
Zoom Video Communications, Inc. provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system; and Zoom Chat enables users to share messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices. It also provides Zoom Rooms, a software-based conference room system; Zoom Conference Room Connector, a gateway for SIP/H.323 endpoints to join Zoom meetings; Zoom Events, which enables users to manage and host internal and external virtual events; OnZoom, a prosumer-focused virtual event platform and marketplace for Zoom users to create, host, and monetize online events; and Zoom Webinars to provide video presentations to large audiences from many devices. In addition, the company offers Zoom Developer Platform that enables developers, platform integrators, service providers, and customers to build apps and integrations using Zoom’s video-based communications solutions, as well as integrate Zoom’s technology into their products and services; Zoom App Marketplace, which helps developers to publish their apps, as well as third-party integrations of Zoom; and Zoom Contact Center, an omnichannel contact center solution. It serves individuals; and education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries. The company was formerly known as Zoom Communications, Inc. and changed its name to Zoom Video Communications, Inc. in May 2012. The company was incorporated in 2011 and is headquartered in San Jose, California.
Receive News & Ratings for Arteris Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Arteris and related companies with MarketBeat.com's FREE daily email newsletter.
