Arteris (NASDAQ:AIP) and e.Digital (OTCMKTS:EDIG) Financial Comparison

Arteris (NASDAQ:AIP) and e.Digital (OTCMKTS:EDIG) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Volatility and Risk

Arteris has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, e.Digital has a beta of 2.02, meaning that its stock price is 102% more volatile than the S&P 500.

Valuation and Earnings

This table compares Arteris and e.Digital’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arteris	$53.67 million	5.05	-$36.87 million	($1.03)	-6.84
e.Digital	$700,000.00	0.04	-$1.27 million	N/A	N/A

e.Digital has lower revenue, but higher earnings than Arteris.

Profitability

This table compares Arteris and e.Digital’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%
e.Digital	N/A	N/A	N/A

Institutional & Insider Ownership

64.4% of Arteris shares are held by institutional investors. 33.7% of Arteris shares are held by insiders. Comparatively, 2.3% of e.Digital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for Arteris and e.Digital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arteris	0	1	4	0	2.80
e.Digital	0	0	0	0	N/A

Arteris presently has a consensus target price of $13.40, indicating a potential upside of 90.07%. Given Arteris’ higher probable upside, research analysts clearly believe Arteris is more favorable than e.Digital.

Summary

Arteris beats e.Digital on 6 of the 11 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 e.Digital

e.Digital Corporation engages in developing and marketing an intellectual property portfolio of context and interpersonal awareness systems, advanced data security technologies, secure communication technologies, and other technologies. It is involved in licensing and enforcing its Nunchi portfolio of patents related to context and interpersonal awareness systems; microSignet data security technology based on characteristics in semi-conductors; Synap security system, method, and apparatus to solve the issues of encryption key generation and exchange; and other technologies. The company was formerly known as Norris Communications, Inc. and changed its name to e.Digital Corporation in January 1999. e.Digital Corporation was founded in 1988 and is based in San Diego, California.