Peraso (NASDAQ:PRSO) vs. Rockley Photonics (NYSE:RKLY) Head to Head Review

Peraso (NASDAQ:PRSOGet Rating) and Rockley Photonics (NYSE:RKLYGet Rating) are both small-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Valuation & Earnings

This table compares Peraso and Rockley Photonics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Peraso $5.68 million 8.24 -$10.91 million ($0.44) -4.93
Rockley Photonics $8.21 million 50.28 -$168.01 million ($0.99) -3.23

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

Profitability

This table compares Peraso and Rockley Photonics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Peraso -92.34% -47.19% -42.03%
Rockley Photonics N/A -236.22% -67.60%

Volatility & Risk

Peraso has a beta of 2.33, suggesting that its share price is 133% more volatile than the S&P 500. Comparatively, Rockley Photonics has a beta of 0.08, suggesting that its share price is 92% less volatile than the S&P 500.

Insider and Institutional Ownership

5.6% of Peraso shares are held by institutional investors. Comparatively, 12.4% of Rockley Photonics shares are held by institutional investors. 2.6% of Peraso shares are held by company insiders. Comparatively, 16.2% of Rockley Photonics shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Peraso and Rockley Photonics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Peraso 0 0 0 0 N/A
Rockley Photonics 0 1 4 0 2.80

Rockley Photonics has a consensus price target of $11.80, suggesting a potential upside of 268.75%. Given Rockley Photonics’ higher probable upside, analysts clearly believe Rockley Photonics is more favorable than Peraso.

Summary

Rockley Photonics beats Peraso on 7 of the 12 factors compared between the two stocks.

Peraso Company Profile (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.

Rockley Photonics Company Profile (Get Rating)

Rockley Photonics Holdings Limited develops and supplies silicon photonics in the United Kingdom and internationally. It offers a platform, which comprises photonic integrated circuits in silicon with integrated III-V devices; application-specific electronic integrated circuits; photonic and electronic co-packaging, which are supported by and coupled with biosensing algorithms, artificial intelligence, cloud analytics, firmware/software, system architecture, and hardware design. The company also provides a biosensing platform for consumer wellness, long-term health trend monitoring, patient monitoring, early disease detection, nutrition management, and treatment of certain chronic diseases. Rockley Photonics Holdings Limited was founded in 2013 and is headquartered in Altrincham, the United Kingdom.

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