EMCORE (NASDAQ:EMKR – Get Rating) and Peraso (NASDAQ:PRSO – Get Rating) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.
Profitability
This table compares EMCORE and Peraso's net margins, return on equity and return on assets.
Get EMCORE alerts:| Net Margins | Return on Equity | Return on Assets | |
| EMCORE | -19.60% | -12.84% | -9.28% |
| Peraso | -119.18% | -61.31% | -52.79% |
Valuation and Earnings
This table compares EMCORE and Peraso's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| EMCORE | $124.13 million | 0.29 | -$24.33 million | ($0.65) | -1.48 |
| Peraso | $5.68 million | 2.81 | -$10.91 million | ($0.59) | -1.24 |
Institutional and Insider Ownership
54.9% of EMCORE shares are owned by institutional investors. Comparatively, 3.7% of Peraso shares are owned by institutional investors. 1.9% of EMCORE shares are owned by company insiders. Comparatively, 5.7% of Peraso 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.
Volatility & Risk
EMCORE has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, Peraso has a beta of 1.98, indicating that its share price is 98% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets for EMCORE and Peraso, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| EMCORE | 0 | 2 | 0 | 0 | 2.00 |
| Peraso | 0 | 0 | 1 | 0 | 3.00 |
EMCORE currently has a consensus target price of $3.25, indicating a potential upside of 237.66%. Peraso has a consensus target price of $2.50, indicating a potential upside of 242.47%. Given Peraso's stronger consensus rating and higher probable upside, analysts clearly believe Peraso is more favorable than EMCORE.
Summary
Peraso beats EMCORE on 9 of the 14 factors compared between the two stocks.
About EMCORE
(Get Rating)
EMCORE Corporation, together with its subsidiaries, provides advanced mixed-signal optics products in the United States, Canada, Asia, Europe, and internationally. It operates in two segments, Aerospace and Defense, and Broadband. The company offers navigation system and inertial sensing products, such as fiber optic gyros products that includes gyroscopes, inertial measurement units (IMU), and inertial navigation systems (INS), as well as QMEMS gyroscopes, accelerometers, IMUs, and INS products primarily for the aerospace and defense markets; and defense optoelectronics comprising optiva platform fiber optic transport systems and erbium doped fiber amplifiers, as well as ruggedized microwave flange-mount transmitters, receivers, and optical delay line products. It also provides cable TV (CATV) lasers and transmitters that are used in forward-and return-path broadband, subassembly components, analog fiber-optic transmitters, quadrature amplitude modulation transmitters, and CATV fiber amplifiers. In addition, the company offers high-power gain chips products, photodiode products, and GPON fiber-to-the-premises (FTTP) and data center chip products for the telecommunication markets; and lasers, receivers, and photodetector components for wireless, distributed sensing, and light detecting and ranging applications. It serves CATV, optical sensing, telecom, data center, and navigation and defense optoelectronics markets. The company sells its products through direct sales force, application engineers, third party sales representatives, and distributors. EMCORE Corporation was founded in 1984 and is headquartered in Alhambra, California.
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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