Arteris (NASDAQ:AIP) & Nutanix (NASDAQ:NTNX) Head to Head Contrast

Arteris (NASDAQ:AIP) and Nutanix (NASDAQ:NTNX) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Valuation & Earnings

This table compares Arteris and Nutanix”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arteris	$70.58 million	16.69	-$34.75 million	($0.87)	-27.55
Nutanix	$2.85 billion	6.96	$1.51 billion	$5.16	14.23

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

Analyst Ratings

This is a breakdown of recent recommendations for Arteris and Nutanix, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arteris	1	0	6	0	2.71
Nutanix	0	9	9	0	2.50

Arteris currently has a consensus price target of $39.43, suggesting a potential upside of 64.49%. Nutanix has a consensus price target of $73.07, suggesting a potential downside of 0.46%. Given Arteris’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Arteris is more favorable than Nutanix.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Arteris	-46.70%	-295.96%	-22.26%
Nutanix	52.81%	-90.13%	9.09%

Risk and Volatility

Arteris has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500. Comparatively, Nutanix has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500.

Institutional and Insider Ownership

64.4% of Arteris shares are held by institutional investors. Comparatively, 85.3% of Nutanix shares are held by institutional investors. 23.3% of Arteris shares are held by company insiders. Comparatively, 2.4% of Nutanix shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Nutanix beats Arteris on 9 of the 14 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 Nutanix

Nutanix, Inc. engages in the provision of a cloud platform leveraging web-scale engineering and consumer-grade design. It operates through the following geographic segments: United States, Europe, the Middle East, Africa, Asia Pacific, and Other Americas. The firm also provides software solutions and cloud services to customers’ enterprise infrastructure. The company was founded by Dheeraj Pandey, Ajeet Singh, and Mohit Aron in 2009 and is headquartered in San Jose, CA.