Samsara (NYSE:IOT) vs. Arteris (NASDAQ:AIP) Financial Contrast

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

Risk & Volatility

Arteris has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500. Comparatively, Samsara has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500.

Insider & Institutional Ownership

64.4% of Arteris shares are held by institutional investors. Comparatively, 96.0% of Samsara shares are held by institutional investors. 29.1% of Arteris shares are held by insiders. Comparatively, 46.5% of Samsara shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arteris	0	0	3	0	3.00
Samsara	0	7	8	0	2.53

Arteris presently has a consensus target price of $15.00, indicating a potential upside of 73.21%. Samsara has a consensus target price of $49.38, indicating a potential upside of 27.33%. Given Arteris’ stronger consensus rating and higher probable upside, analysts clearly believe Arteris is more favorable than Samsara.

Valuation and Earnings

This table compares Arteris and Samsara”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arteris	$57.72 million	6.40	-$33.64 million	($0.82)	-10.56
Samsara	$1.25 billion	17.68	-$154.91 million	($0.16)	-242.41

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Arteris	-52.41%	-8,546.17%	-31.56%
Samsara	-6.16%	-7.80%	-4.18%

Summary

Samsara beats Arteris on 10 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 Samsara

Samsara Inc. provides solutions that connects physical operations data to its connected operations cloud in the United States and internationally. The company's Connected Operations Cloud includes Data Platform, which ingests, aggregates, and enriches data from its IoT devices and has embedded capabilities for AI, workflows and analytics, alerts, API connections, and data security and privacy. Its applications include video-based safety that enables customers to build a safety program and protect their teams with AI-enabled video; vehicle telematics which provides visibility into real-time vehicle location and diagnostics with GPS tracking, routing and dispatch, fuel efficiency management, electric vehicle usage and charge planning, preventative maintenance, and insights to manage fuel and energy costs; and mobile apps and workflows that improves productivity for frontline workers and enables regulatory compliance for workers to see upcoming jobs, capture electronic documents, perform maintenance inspections, maintain compliance logs, and message with back-office administration. The company also provides equipment monitoring which offers visibility and management of unpowered and powered assets, ranging from generators and compressors to heavy construction equipment and trailers to improve operating efficiency, prevent unplanned downtime, and avoid critical safety and compliance issues; and site visibility that provides remote visibility into sites to improve onsite security, safety, and incident response times. It serves transportation, wholesale and retail trade, construction, field services, logistics, utilities and energy, healthcare and education, manufacturing, food and beverage, and other industries, as well as government. Samsara Inc. was incorporated in 2015 and is headquartered in San Francisco, California.