Okta (NASDAQ:OKTA) versus Arteris (NASDAQ:AIP) Head to Head Analysis

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Arteris and Okta, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arteris	1	0	6	0	2.71
Okta	0	11	31	1	2.77

Arteris presently has a consensus target price of $39.43, indicating a potential upside of 65.04%. Okta has a consensus target price of $198.41, indicating a potential upside of 1.65%. Given Arteris’ higher possible upside, analysts clearly believe Arteris is more favorable than Okta.

Volatility and Risk

Arteris has a beta of 1.91, suggesting that its share price is 91% more volatile than the S&P 500. Comparatively, Okta has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500.

Profitability

This table compares Arteris and Okta’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%
Okta	9.63%	4.50%	3.34%

Insider & Institutional Ownership

64.4% of Arteris shares are held by institutional investors. Comparatively, 86.6% of Okta shares are held by institutional investors. 23.3% of Arteris shares are held by insiders. Comparatively, 4.6% of Okta shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Arteris and Okta”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arteris	$70.58 million	16.64	-$34.75 million	($0.87)	-27.46
Okta	$2.92 billion	11.69	$235.00 million	$1.66	117.58

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

Summary

Okta beats Arteris on 11 of the 15 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 Okta

Okta, Inc. operates as an identity partner in the United States and internationally. The company offers Okta's suite of products and services used to manage and secure identities, such as Single Sign-On that enables users to access applications in the cloud or on-premises from various devices; Adaptive Multi-Factor Authentication provides a layer of security for cloud, mobile, web applications, and data; API Access Management enables organizations to secure APIs; Access Gateway enables organizations to extend Workforce Identity Cloud; and Okta Device Access enables end users to securely log in to devices with Okta credentials. It also provides Universal Directory, a cloud-based system of record to store and secure user, application, and device profiles for an organization; Lifecycle Management enables IT organizations or developers to manage a user's identity throughout its lifecycle; Okta Identity Governance provides identity access management and identity governance solutions; Advanced Server Access offers access management to secure cloud infrastructure; Okta Privileged Access enables organizations to reduce risk with unified access and governance management for on-premises and cloud resources; and Okta Workforce Identity Workflows. In addition, the company offers Universal Login, which allows customers to provide login experience across different applications and devices; and Attack Protection, a suite of security capabilities that protects customers from different types of malicious traffic. Further, it provides Adaptive Multi-Factor Authentication, Passwordless, Machine to Machine, Private Cloud, Organizations, Actions and Extensibility, and Enterprise Connections. The company sells its products directly to customers through sales force and channel partners. The company was formerly known as Saasure, Inc. Okta, Inc. was incorporated in 2009 and is headquartered in San Francisco, California.