Contrasting Arteris (NASDAQ:AIP) and ASE Technology (NYSE:ASX)

Arteris (NASDAQ:AIPGet Rating) and ASE Technology (NYSE:ASXGet Rating) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Arteris N/A N/A N/A
ASE Technology 11.49% 26.31% 10.37%

Insider and Institutional Ownership

18.0% of Arteris shares are held by institutional investors. Comparatively, 6.5% of ASE Technology shares are held by institutional investors. 22.9% of ASE Technology shares are held by 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 breakdown of recent ratings and recommmendations for Arteris and ASE Technology, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arteris 0 1 4 0 2.80
ASE Technology 0 4 0 0 2.00

Arteris presently has a consensus target price of $24.67, indicating a potential upside of 174.68%. ASE Technology has a consensus target price of $8.10, indicating a potential upside of 13.13%. Given Arteris’ stronger consensus rating and higher possible upside, analysts clearly believe Arteris is more favorable than ASE Technology.

Valuation and Earnings

This table compares Arteris and ASE Technology’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Arteris $37.86 million 7.58 -$23.38 million N/A N/A
ASE Technology $20.41 billion 0.77 $2.17 billion $1.10 6.51

ASE Technology has higher revenue and earnings than Arteris.

Summary

ASE Technology beats Arteris on 6 of the 11 factors compared between the two stocks.

Arteris Company Profile (Get Rating)

Arteris, Inc. provides semiconductor interconnect intellectual property (IP) and IP deployment solutions 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 System-on-Chip (Soc) designs and Network-on-Chip (NoC) interconnect IP. Its products include FlexNoC, a silicon-proven interconnect IP product; FlexNoC Resilience Package, which provides on-chip data protection; Ncore, a silicon-proven and cache coherent interconnect IP product that provides scalable, configurable, and area efficient characteristics; CodaCache, a last-level cache semiconductor IP product; and Physical interconnect aware NoC optimizer, a software tool that estimates physical layout effects during the architecture and logic development stages of an SoC interconnect design; The company also offers FlexWay for IP subsystem interconnect; FlexPSI for All-digital inter chip link; and FlexNoC Physical for linking physical placement and routing tools. In addition, it provides IP deployment software solutions, including specification, design, documentation, artificial intelligence (AI) package, design data intelligence, and harmony trace. The company serves customers in the automotive, AI/machine learning, 5G and wireless communications, data centers, consumer electronics, and other markets. Arteris, Inc. was founded in 2003 and is headquartered in Campbell, California.

ASE Technology Company Profile (Get Rating)

ASE Technology Holding Co., Ltd. provides a range of semiconductors packaging and testing, and electronic manufacturing services in the United States, Taiwan, rest of Asia, Europe, and internationally. It offers packaging services, including flip chip ball grid array (BGA) and chip scale package (CSP), advanced chip scale packages, quad flat packages, low profile and thin quad flat packages, bump chip carrier and quad flat no-lead (QFN) packages, advanced QFN packages, plastic BGAs, and 3D chip packages; stacked die solutions in various packages; and copper and silver wire bonding solutions. The company also provides advanced packages, such as flip chip BGA; heat-spreader FCBGA; flip-chip CSP; hybrid FCCSP; flip chip package in package and package on package (POP); advanced single sided substrate; high-bandwidth POP; fan-out wafer-level packaging; SESUB; and 2.5D silicon interposer. In addition, it offers IC wire bonding packages; system-in-package products (SiP) and modules; and interconnect materials, as well as assembles automotive electronic products. Further, the company provides a range of semiconductor testing services, including front-end engineering testing, wafer probing, logic/mixed-signal/RF module and SiP/MEMS/discrete final testing, and other test-related services, as well as drop shipment services. Additionally, it develops, constructs, sells, leases, and manages real estate properties; produces substrates; offers information software, equipment leasing, investment advisory, and warehousing management services; processes and sells computer and communication peripherals, electronic components, telecommunications equipment, and motherboards; and imports and exports goods and technology. The company was incorporated in 1984 and is headquartered in Kaohsiung, Taiwan.

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