STMicroelectronics (NYSE:STM – Get Rating) and Peraso (NASDAQ:PRSO – Get Rating) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, profitability, risk and analyst recommendations.
Risk and Volatility
STMicroelectronics has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500. Comparatively, Peraso has a beta of 2.3, meaning that its share price is 130% more volatile than the S&P 500.
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Valuation & Earnings
This table compares STMicroelectronics and Peraso's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
| STMicroelectronics | $12.76 billion | 2.74 | $2.00 billion | $3.04 | 12.67 |
| Peraso | $5.68 million | 9.12 | -$10.91 million | ($0.44) | -5.45 |
STMicroelectronics has higher revenue and earnings than Peraso. Peraso is trading at a lower price-to-earnings ratio than STMicroelectronics, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares STMicroelectronics and Peraso's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
| STMicroelectronics | 20.08% | 29.96% | 17.76% |
| Peraso | -92.34% | -47.19% | -42.03% |
Analyst Recommendations
This is a summary of recent recommendations and price targets for STMicroelectronics and Peraso, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
| STMicroelectronics | 1 | 3 | 7 | 0 | 2.55 |
| Peraso | 0 | 0 | 0 | 0 | N/A |
STMicroelectronics currently has a consensus price target of $51.00, indicating a potential upside of 32.40%. Given STMicroelectronics' higher possible upside, equities research analysts plainly believe STMicroelectronics is more favorable than Peraso.
Institutional & Insider Ownership
11.5% of STMicroelectronics shares are owned by institutional investors. Comparatively, 5.6% of Peraso shares are owned by institutional investors. 2.6% of Peraso shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
STMicroelectronics beats Peraso on 10 of the 13 factors compared between the two stocks.
About STMicroelectronics
(Get Rating)
STMicroelectronics N.V., together with its subsidiaries, designs, develops, manufactures, and sells semiconductor products in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company operates through Automotive and Discrete Group; Analog, MEMS and Sensors Group; and Microcontrollers and Digital ICs Group segments. The Automotive and Discrete Group segment offers automotive integrated circuits (ICs); and discrete and power transistor products. The Analog, MEMS and Sensors Group segment provides industrial application-specific integrated circuits (ASICs) and application-specific standard products (ASSPs); general purpose analog products; custom analog ICs; wireless charging solutions; galvanic isolated gate drivers; low and high voltage amplifiers, comparators, and current-sense amplifiers; MasterGaN, a solution that integrates a silicon driver and GaN power transistors in a single package; wireline and wireless connectivity ICs; touch screen controllers; micro-electro-mechanical systems (MEMS) products, including sensors or actuators; and optical sensing solutions. The Microcontrollers and Digital ICs Group segment offers general purpose and secure microcontrollers; radio frequency (RF) and electrically erasable programmable read-only memories; and RF, digital, and mixed-signal ASICs. It also provides assembly and other services. The company sells its products through distributors and retailers, as well as through sales representatives. It serves automotive, industrial, personal electronics and communications equipment, and computers and peripherals markets. STMicroelectronics N.V. was incorporated in 1987 and is headquartered in Geneva, Switzerland.
About Peraso
(Get Rating)
Peraso Inc. operates as a fabless semiconductor company, develops, markets, and sells semiconductor devices and modules. It focuses on development of millimeter wavelength (mmWave) for the 60 gigahertz, spectrum, and for 5G cellular networks. The company's products include mmWave ICs, including baseband IC, various mmWave radio frequency, integrated circuits, as well as associated antenna technology; and mmWave modules. It also provides accelerator engine products, comprising bandwidth engine for high-performance applications where throughput is critical; and programmable hyperspeed engine to allow user-defined functions or algorithms. In addition, the company offers quad partition rate which allows for parallel accesses to multiple partitions of the memory simultaneously. Its mmWave products enable various applications, such as 5G with low latency and high reliability, multi-gigabit, mmWave links over 25 kilometers, as well as consumer applications, such as wireless video streaming, and untethered augmented reality and virtual reality. The company also licenses intellectual property, as well as offers non-recurring engineering services. It markets its products through direct sales personnel, as well as sells representatives and distributors. The company was formerly knowns as MoSys, Inc. and changed its name to Peraso Inc. in December 2021. Peraso Inc. was incorporated in 1991 and is based in San Jose, California.
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