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Reviewing Arteris (NASDAQ:AIP) and Rubicon Technology (NASDAQ:RBCN)

Financial News Live ·  Jan 11, 2023 13:31

Arteris (NASDAQ:AIP – Get Rating) and Rubicon Technology (NASDAQ:RBCN – Get Rating) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, institutional ownership and analyst recommendations.

Volatility & Risk

Arteris has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500. Comparatively, Rubicon Technology has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

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Profitability

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

Net Margins Return on Equity Return on Assets
Arteris -55.25% -58.91% -23.25%
Rubicon Technology 20.85% 3.42% 3.19%

Insider & Institutional Ownership

26.1% of Arteris shares are owned by institutional investors. 48.3% of Arteris shares are owned by insiders. Comparatively, 3.6% of Rubicon Technology shares are owned by 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Arteris and Rubicon Technology, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arteris 0 1 2 0 2.67
Rubicon Technology 0 0 0 0 N/A

Arteris presently has a consensus price target of $14.75, suggesting a potential upside of 252.87%. Given Arteris' higher probable upside, research analysts plainly believe Arteris is more favorable than Rubicon Technology.

Earnings and Valuation

This table compares Arteris and Rubicon Technology's gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Arteris $37.86 million 3.69 -$23.38 million ($0.90) -4.64
Rubicon Technology $4.06 million 1.11 -$730,000.00 N/A N/A

Rubicon Technology has lower revenue, but higher earnings than Arteris.

Summary

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

About Arteris

(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.

About Rubicon Technology

(Get Rating)

Rubicon Technology, Inc. provides monocrystalline sapphire for applications in optical and industrial systems in North America and Asia. The company offers optical and industrial sapphire products in various shapes and sizes, including round and rectangular windows and wafers, domes, tubes, and rods for a range of end markets comprising defense and aerospace, specialty lighting, instrumentation, sensors and detectors, semiconductor process equipment, electronic substrates, medical, and laser applications. It serves defense subcontractors, industrial manufacturers, fabricators, and resellers. The company was incorporated in 2001 and is based in Bensenville, Illinois.

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