Financial Review: OneStream (NASDAQ:OS) and Arteris (NASDAQ:AIP)

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

Institutional and Insider Ownership

64.4% of Arteris shares are owned by institutional investors. 12.8% of OneStream shares are owned by company insiders. Comparatively, 23.3% of Arteris shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

OneStream has a beta of 1.99, indicating that its stock price is 99% more volatile than the S&P 500. Comparatively, Arteris has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OneStream	-8.36%	11.28%	6.68%
Arteris	-46.70%	-295.96%	-22.26%

Analyst Ratings

This is a breakdown of current ratings and target prices for OneStream and Arteris, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OneStream	3	17	0	0	1.85
Arteris	1	0	6	0	2.71

OneStream presently has a consensus price target of $24.06, suggesting a potential upside of 0.26%. Arteris has a consensus price target of $37.29, suggesting a potential upside of 97.64%. Given Arteris’ stronger consensus rating and higher possible upside, analysts clearly believe Arteris is more favorable than OneStream.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OneStream	$601.93 million	9.80	-$50.30 million	($0.28)	-85.71
Arteris	$84.61 million	10.96	-$34.75 million	($0.87)	-21.68

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

Summary

Arteris beats OneStream on 8 of the 14 factors compared between the two stocks.

About OneStream

OneStream, Inc. is a holding company, which engages in the development of an artificial intelligence (AI) based enterprise finance platform. The firm offers Digital Finance Cloud, an AI-enabled and extensible software platform that unifies core financial functions and operational data and processes. The company was founded by Craig Colby and Thomas Shea on October 15, 2021 and is headquartered in Birmingham, MI.

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.