Arteris (NASDAQ:AIP) versus AUO (OTCMKTS:AUOTY) Financial Contrast

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

Analyst Ratings

This is a summary of recent ratings and price targets for Arteris and AUO, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arteris	0	1	4	0	2.80
AUO	0	0	0	0	N/A

Arteris presently has a consensus price target of $13.40, indicating a potential upside of 66.46%. Given Arteris’ higher probable upside, equities analysts clearly believe Arteris is more favorable than AUO.

Volatility and Risk

Arteris has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, AUO has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500.

Valuation and Earnings

This table compares Arteris and AUO’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arteris	$53.67 million	5.77	-$36.87 million	($1.03)	-7.82
AUO	N/A	N/A	N/A	N/A	N/A

AUO has lower revenue, but higher earnings than Arteris.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Arteris	-69.70%	-198.35%	-35.33%
AUO	N/A	N/A	N/A

Institutional & Insider Ownership

64.4% of Arteris shares are owned by institutional investors. 33.7% of Arteris shares are owned by company insiders. Comparatively, 16.0% of AUO shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Arteris beats AUO on 6 of the 9 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 AUO

AUO Corporation researches, develops, produces, and sells thin film transistor liquid crystal displays (TFT-LCDs) and other flat panel displays for various applications. It operates through two segments, Display and Energy. The company designs, manufactures, and sells ingots, solar wafers, and solar modules, as well as provides technical engineering and maintenance services for solar system projects. It also sells and leases content management system and related hardware; designs digital signage content and field curation solutions; plans, designs, and develops construction project for environmental protection and related project management; and designs, manufactures, and sells TFT-LCD modules, TV sets and related parts, backlight modules, automotive parts, and precision plastic parts. In addition, the company engages in the development, manufacturing, and sale of medical equipment; services related to site rental and educational activities; research and development, and IP related business; solar power generation; and sale and sales support of TFTLCD panels. Further, it designs, develops, and sells software and hardware for health care industry; provides software and hardware integration system and equipment relating to intelligent manufacturing, as well as software development and related consulting services; and investment services. It operates in the People's Republic of China, Taiwan, the United States, Japan, Singapore, and internationally. The company was formerly known as AU Optronics Corp. and changed its name to AUO Corporation in June 2022. AUO Corporation was founded in 1996 and is headquartered in Hsinchu City, Taiwan.