Arteris (NASDAQ:AIP – Get Free Report) and Commerce.com (NASDAQ:CMRC – Get Free Report) are both small-cap technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.
Insider and Institutional Ownership
64.4% of Arteris shares are owned by institutional investors. Comparatively, 79.2% of Commerce.com shares are owned by institutional investors. 23.3% of Arteris shares are owned by company insiders. Comparatively, 2.7% of Commerce.com shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current recommendations and price targets for Arteris and Commerce.com, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Arteris | 1 | 0 | 6 | 0 | 2.71 |
| Commerce.com | 3 | 3 | 1 | 0 | 1.71 |
Profitability
This table compares Arteris and Commerce.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Arteris | -46.70% | -295.96% | -22.26% |
| Commerce.com | -1.66% | 20.49% | 2.92% |
Earnings and Valuation
This table compares Arteris and Commerce.com”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Arteris | $70.58 million | 16.80 | -$34.75 million | ($0.87) | -27.74 |
| Commerce.com | $342.35 million | 0.78 | -$19.34 million | ($0.07) | -45.86 |
Commerce.com has higher revenue and earnings than Arteris. Commerce.com is trading at a lower price-to-earnings ratio than Arteris, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Arteris has a beta of 1.9, meaning that its share price is 90% more volatile than the S&P 500. Comparatively, Commerce.com has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.
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 Commerce.com
BigCommerce Holdings, Inc. operates a software-as-a-service platform for small businesses, mid-markets, and large enterprises in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and internationally. The company’s platform provides various services for launching and scaling e-commerce operation, including store design, catalog management, hosting, checkout, order management, reporting, and pre-integrations. As of December 31, 2021, it served approximately 60,000 online stores across industries. BigCommerce Holdings, Inc. was founded in 2009 and is headquartered in Austin, Texas.
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