Contrasting Tokyo Electron (OTCMKTS:TOELY) and Arteris (NASDAQ:AIP)

Tokyo Electron (OTCMKTS:TOELY) 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 risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Institutional & Insider Ownership

1.3% of Tokyo Electron shares are owned by institutional investors. Comparatively, 64.4% of Arteris shares are owned by institutional investors. 36.1% of Arteris shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Tokyo Electron and Arteris’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tokyo Electron	$16.35 billion	6.40	$3.53 billion	N/A	N/A
Arteris	$53.67 million	4.69	-$36.87 million	($1.04)	-6.39

Tokyo Electron has higher revenue and earnings than Arteris.

Volatility and Risk

Tokyo Electron has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500. Comparatively, Arteris has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tokyo Electron	N/A	N/A	N/A
Arteris	-68.70%	-150.71%	-34.46%

Analyst Ratings

This is a breakdown of current ratings and target prices for Tokyo Electron and Arteris, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tokyo Electron	0	0	0	1	4.00
Arteris	0	0	4	0	3.00

Arteris has a consensus price target of $16.00, suggesting a potential upside of 140.60%. Given Arteris’ higher possible upside, analysts plainly believe Arteris is more favorable than Tokyo Electron.

Summary

Tokyo Electron beats Arteris on 9 of the 13 factors compared between the two stocks.

About Tokyo Electron

Tokyo Electron Limited, together with its subsidiaries, develops, manufactures, and sells semiconductor and flat panel display (FPD) production equipment in Japan, Europe, North America, Taiwan, China, South Korea, Southeast Asia, and internationally. The company offers coaters/developers, etch systems, surface preparation systems, deposition systems, test systems, wafer bonders/debonders, wafer edge trimming, SiC epitaxial CVD systems, gas cluster ion beam system, and cleaning systems. It also provides plasma etch/ash systems for use in the manufacture of FPDs, as well as inkjet printing systems for manufacturing OLED displays. In addition, the company offers delivery, facility management, and non-life insurance services; sells semiconductor products, board computer products, software, and other electronic components; sells and supports network/storage/middleware related solutions; and develops, manufactures, and sells magnetic annealing systems. Tokyo Electron Limited was incorporated in 1951 and is headquartered in Tokyo, Japan.

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.