Reviewing Commerce.com (NASDAQ:CMRC) and Arteris (NASDAQ:AIP)

Arteris (NASDAQ:AIP) and Commerce.com (NASDAQ:CMRC) are both small-cap technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.

Risk & Volatility

Arteris has a beta of 1.9, indicating that its share price is 90% more volatile than the S&P 500. Comparatively, Commerce.com has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500.

Earnings & Valuation

This table compares Arteris and Commerce.com”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arteris	$84.61 million	12.46	-$34.75 million	($0.87)	-24.66
Commerce.com	$346.90 million	0.83	-$19.34 million	($0.07)	-49.86

Commerce.com has higher revenue and earnings than Arteris. Commerce.com 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 Commerce.com’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%
Commerce.com	-1.66%	20.49%	2.92%

Insider and Institutional Ownership

64.4% of Arteris shares are owned by institutional investors. Comparatively, 79.2% of Commerce.com shares are owned by institutional investors. 23.3% of Arteris shares are owned by insiders. Comparatively, 2.7% of Commerce.com shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arteris	1	0	6	0	2.71
Commerce.com	3	2	1	1	2.00

Arteris currently has a consensus target price of $39.43, indicating a potential upside of 83.82%. Commerce.com has a consensus target price of $4.17, indicating a potential upside of 19.39%. Given Arteris’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Arteris is more favorable than Commerce.com.

Summary

Commerce.com beats Arteris on 8 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 Commerce.com

BigCommerce Holdings, Inc. operates a software-as-a-service platform for small businesses, mid-markets, and large enterprises in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and internationally. The company’s platform provides various services for launching and scaling e-commerce operation, including store design, catalog management, hosting, checkout, order management, reporting, and pre-integrations. As of December 31, 2021, it served approximately 60,000 online stores across industries. BigCommerce Holdings, Inc. was founded in 2009 and is headquartered in Austin, Texas.