Contrasting Presto Automation (PRST) and Its Competitors

Presto Automation (NASDAQ:PRST) is one of 396 publicly-traded companies in the “Prepackaged software” industry, but how does it compare to its peers? We will compare Presto Automation to related businesses based on the strength of its dividends, risk, valuation, analyst recommendations, earnings, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations for Presto Automation and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Presto Automation	0	0	1	0	3.00
Presto Automation Competitors	1999	13293	26977	706	2.61

Presto Automation presently has a consensus price target of $5.00, suggesting a potential upside of 474.71%. As a group, “Prepackaged software” companies have a potential upside of 6.61%. Given Presto Automation’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Presto Automation is more favorable than its peers.

Risk & Volatility

Presto Automation has a beta of 2.42, suggesting that its share price is 142% more volatile than the S&P 500. Comparatively, Presto Automation’s peers have a beta of 1.82, suggesting that their average share price is 82% more volatile than the S&P 500.

Insider & Institutional Ownership

13.2% of Presto Automation shares are owned by institutional investors. Comparatively, 54.3% of shares of all “Prepackaged software” companies are owned by institutional investors. 38.7% of Presto Automation shares are owned by insiders. Comparatively, 18.2% of shares of all “Prepackaged software” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Presto Automation and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Presto Automation	-152.70%	N/A	-149.56%
Presto Automation Competitors	-74.20%	-144.93%	-8.43%

Earnings & Valuation

This table compares Presto Automation and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Presto Automation	$26.14 million	-$34.48 million	-1.45
Presto Automation Competitors	$2.18 billion	$255.44 million	-2.85

Presto Automation’s peers have higher revenue and earnings than Presto Automation. Presto Automation is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Presto Automation beats its peers on 7 of the 13 factors compared.

Presto Automation Company Profile

Presto Automation Inc. engages in the provision of artificial intelligence (AI) and automation solutions to the restaurant enterprise technology industry in the United States. The company offers Presto Voice, an AI solution to quick service restaurants that completes complex orders, including large orders with multiple menu modifications and add-ons, with limited on-site restaurant staff intervention; and Presto Touch, a pay-at-table tablet solution to casual dining chains that enables self-serve ordering, payment processing, personalization, and gaming experiences for restaurant guests. Presto Automation, Inc. was founded in 2008 and is headquartered in San Carlos, California.