Critical Survey: Arteris (NASDAQ:AIP) & Kyocera (OTCMKTS:KYOCY)

Arteris (NASDAQ:AIP) and Kyocera (OTCMKTS:KYOCY) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.

Volatility & Risk

Arteris has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, Kyocera has a beta of 0.31, meaning that its stock price is 69% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Arteris and Kyocera, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arteris	0	1	3	0	2.75
Kyocera	0	0	0	0	0.00

Arteris currently has a consensus target price of $13.00, suggesting a potential upside of 53.85%. Given Arteris’ stronger consensus rating and higher probable upside, research analysts clearly believe Arteris is more favorable than Kyocera.

Insider and Institutional Ownership

64.4% of Arteris shares are held by institutional investors. Comparatively, 7.4% of Kyocera shares are held by institutional investors. 33.7% of Arteris shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Arteris and Kyocera’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arteris	-65.72%	-437.95%	-35.34%
Kyocera	N/A	N/A	N/A

Valuation & Earnings

This table compares Arteris and Kyocera”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arteris	$53.67 million	6.33	-$36.87 million	($0.96)	-8.80
Kyocera	$13.88 billion	0.96	$697.41 million	N/A	N/A

Kyocera has higher revenue and earnings than Arteris.

Summary

Arteris beats Kyocera on 7 of the 13 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 Kyocera

Kyocera Corporation develops, produces, and distributes products based on fine ceramic technologies in Japan, rest of Asia, Europe, the United States, and internationally. It operates through Core Components Business, Electronic Components Business, and Solutions Business segments. The Core Components Business segment offers components, such as fine ceramic components for semiconductor processing equipment, automotive camera modules, and ceramic packages, as well as organic packages and boards to protect electronic components and ICs to industrial machinery, automotive-related, and the information and communication-related markets; optical components, and jewelry and applied ceramic related products; and medical devices comprising prosthetic joints and dental implants. The Electronic Components Business segment provides various electronic components and devices, including capacitors, crystal devices, connectors, and power semiconductor devices for diverse fields comprising information and communications, industrial equipment, automotive-related, and consumer markets, as well as sensors and control components. The Solutions Business segment offers cutting tools, as well as pneumatic and power tools for automotive-related and general industrial, and construction markets; printers for offices; and communication terminals, such as mobile phones, as well as information systems and telecommunication services. This segment also provides MFPs, commercial inkjet printers, communication modules, displays, and printing devices, as well as information systems and telecommunication, smart energy-related products and services, and solution services, such as document management system. The company was formerly known as Kyoto Ceramic Kabushiki Kaisha and changed its name to Kyocera Corporation in 1982. Kyocera Corporation was incorporated in 1946 and is headquartered in Kyoto, Japan.