Critical Contrast: Audioeye (NASDAQ:AEYE) vs. Arteris (NASDAQ:AIP)

Arteris (NASDAQ:AIP) and Audioeye (NASDAQ:AEYE) are both small-cap technology companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, earnings, valuation, institutional ownership and risk.

Valuation and Earnings

This table compares Arteris and Audioeye”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	13.76	-$34.75 million	($0.87)	-22.71
Audioeye	$40.31 million	2.55	-$3.08 million	($0.36)	-22.75

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

Profitability

This table compares Arteris and Audioeye’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%
Audioeye	-10.92%	121.59%	15.45%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Arteris and Audioeye, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arteris	1	0	6	0	2.71
Audioeye	1	1	4	0	2.50

Arteris currently has a consensus price target of $37.29, indicating a potential upside of 88.69%. Audioeye has a consensus price target of $14.62, indicating a potential upside of 78.57%. Given Arteris’ stronger consensus rating and higher possible upside, equities analysts plainly believe Arteris is more favorable than Audioeye.

Insider & Institutional Ownership

64.4% of Arteris shares are owned by institutional investors. Comparatively, 51.1% of Audioeye shares are owned by institutional investors. 23.3% of Arteris shares are owned by company insiders. Comparatively, 25.9% of Audioeye shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Arteris has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500. Comparatively, Audioeye has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500.

Summary

Arteris beats Audioeye on 8 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 Audioeye

AudioEye, Inc. provides patented, internet content publication, distribution software, and related services to Internet and other media to people regardless of their device, location, or disabilities in the United States. Its software and services enable conversion of digital content into accessible formats and allows for real time distribution to end users on any Internet connected device. The company offers AudioEye, an always-on testing, remediation, and monitoring solution that improves conformance with web content accessibility guidelines; identifies and fixes the accessibility errors and addresses a range of disabilities, including dyslexia, color blindness, epilepsy, and others; and provides additional solutions to provide for enhanced compliance and accessibility, including periodic auditing, human assisted technological remediations, and legal support services, as well as PDF remediation services, Native Mobile App and audit reports to help customers with their digital accessibility needs. The company serves small- and medium-sized businesses, corporate enterprises, non-profit organizations, and federal government agencies, as well as federal, state, and local governments and agencies through content management system partners, platform and agency partners, authorized resellers, and the marketplace. AudioEye, Inc. was incorporated in 2005 and is based in Tucson, Arizona.