Arteris (NASDAQ:AIP) and Silicon Motion Technology (NASDAQ:SIMO) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Earnings & Valuation

This table compares Arteris and Silicon Motion Technology's top-line revenue, earnings per share and valuation.

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

Risk and Volatility

Arteris has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500. Comparatively, Silicon Motion Technology has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Profitability

This table compares Arteris and Silicon Motion Technology's net margins, return on equity and return on assets.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Arteris and Silicon Motion Technology, as reported by MarketBeat.

Arteris currently has a consensus price target of $14.75, suggesting a potential upside of 266.92%. Silicon Motion Technology has a consensus price target of $103.00, suggesting a potential upside of 61.95%. Given Arteris' stronger consensus rating and  higher probable upside, research analysts plainly believe Arteris is more favorable than Silicon Motion Technology.

Institutional and Insider Ownership

26.1% of Arteris shares are owned by institutional investors. Comparatively, 66.7% of Silicon Motion Technology shares are owned by institutional investors. 48.3% of Arteris shares are owned by company insiders. Comparatively, 5.3% of Silicon Motion Technology shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Silicon Motion Technology beats Arteris on 10 of the 14 factors compared between the two stocks.

About Arteris

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.

About Silicon Motion Technology

Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops, and markets NAND flash controllers for solid-state storage devices. It offers controllers for computing-grade solid state drives (SSDs), which are used in PCs and other client devices; enterprise-grade SSDs used in data centers; eMMC and UFS mobile embedded storage for use in smartphones and IoT devices; flash memory cards and flash drives for use in expandable storage; and specialized SSDs that are used in industrial, commercial, and automotive applications. It markets its controllers under the SMI brand; enterprise-grade SSDs under the Shannon Systems brand; and single-chip industrial-grade SSDs under the Ferri SSD, Ferri-eMMC, and Ferri-UFS brands. The company markets and sells its products through direct sales personnel and independent electronics distributors to NAND flash makers, module makers, hyperscalers, and OEMs.