Peraso (NASDAQ:PRSO) & Everspin Tech (NASDAQ:MRAM) Critical Analysis

Peraso (NASDAQ:PRSO) and Everspin Tech (NASDAQ:MRAM) are both small-cap technology companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.

Insider & Institutional Ownership

77.6% of Peraso shares are held by institutional investors. Comparatively, 44.7% of Everspin Tech shares are held by institutional investors. 1.7% of Peraso shares are held by company insiders. Comparatively, 6.3% of Everspin Tech shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Peraso has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, Everspin Tech has a beta of 1.88, meaning that its share price is 88% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Peraso and Everspin Tech, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peraso	1	0	2	0	2.33
Everspin Tech	1	0	2	0	2.33

Peraso presently has a consensus price target of $3.08, indicating a potential upside of 714.83%. Everspin Tech has a consensus price target of $22.00, indicating a potential upside of 74.74%. Given Peraso’s higher probable upside, analysts plainly believe Peraso is more favorable than Everspin Tech.

Earnings and Valuation

This table compares Peraso and Everspin Tech”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Peraso	$8.37 million	0.68	-$4.75 million	($0.68)	-0.56
Everspin Tech	$55.20 million	5.55	-$590,000.00	($0.11)	-114.45

Everspin Tech has higher revenue and earnings than Peraso. Everspin Tech is trading at a lower price-to-earnings ratio than Peraso, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Peraso and Everspin Tech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Peraso	-85.63%	-223.38%	-153.27%
Everspin Tech	-4.22%	7.73%	6.37%

Summary

Everspin Tech beats Peraso on 9 of the 12 factors compared between the two stocks.

About Peraso

Peraso Inc., a fabless semiconductor company, develops, markets, and sells semiconductor devices and modules. The company's products include millimeter wavelength (mmWave) ICs, including baseband IC, various mmWave radio frequency, integrated circuits, as well as associated antenna technology; and mmWave antenna modules. It also provides accelerator engine products, comprising bandwidth engine for high-performance applications where throughput is critical; and quad partition rate, which allows for parallel accesses to multiple partitions of the memory simultaneously. Its mmWave products are used for various applications, such as multi-gigabit point-to-point (PtMP) wireless links; and fixed wireless access in the 5G operating bands, 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.

About Everspin Tech

Everspin Technologies, Inc. engages in the manufacture and sale of magnetoresistive random access memory (MRAM) products in the United States, Japan, Hong Kong, Germany, Singapore, China, Canada, and internationally. It offers Toggle MRAM, spin-transfer torque MRAM, and tunnel magneto resistance sensor products, as well as foundry services for MRAM products. The company provides its products for applications, including industrial, medical, automotive/transportation, aerospace, and data center markets. It serves original equipment manufacturers, contract manufacturers, and original design manufacturers through a direct sales channel, and a network of representatives and distributors. Everspin Technologies, Inc. was incorporated in 2008 and is headquartered in Chandler, Arizona.