SemiLEDS (NASDAQ:LEDS) and Peraso (NASDAQ:PRSO) Head-To-Head Review

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

Profitability

This table compares Peraso and SemiLEDS’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%
SemiLEDS	-3.92%	-43.09%	-6.39%

Valuation & Earnings

This table compares Peraso and SemiLEDS”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Peraso	$12.19 million	0.71	-$4.75 million	($0.68)	-0.85
SemiLEDS	$43.01 million	0.39	-$1.13 million	($0.13)	-15.69

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

Institutional & Insider Ownership

77.6% of Peraso shares are owned by institutional investors. Comparatively, 76.3% of SemiLEDS shares are owned by institutional investors. 1.7% of Peraso shares are owned by insiders. Comparatively, 58.5% of SemiLEDS shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Peraso has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, SemiLEDS has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Peraso and SemiLEDS, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peraso	1	0	2	1	2.75
SemiLEDS	1	0	0	0	1.00

Peraso presently has a consensus price target of $3.08, indicating a potential upside of 435.30%. Given Peraso’s stronger consensus rating and higher probable upside, analysts clearly believe Peraso is more favorable than SemiLEDS.

Summary

SemiLEDS beats Peraso on 8 of the 15 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 SemiLEDS

SemiLEDs Corporation develops, manufactures, and sells light emitting diode (LED) chips, LED components, and LED modules and systems in the United States, Taiwan, the Netherlands, Germany, Japan, and internationally. The company also sells enhanced vertical, LED product series in blue, white, green, and UV; LED chips to packagers or distributors; and lighting products primarily to original design manufacturers of lighting products and the end-users of lighting devices, as well as packs and sells its LED chips. Its products are used for general lighting applications, including commercial, industrial, and residential lighting; and specialty industrial applications, such as ultraviolet or UV, curing of polymers, LED light therapy in medical/cosmetic applications, counterfeit detection, germicidal and viricidal devices LED lighting for horticulture applications, architectural lighting, and entertainment lighting. The company was incorporated in 2005 and is based in Chu-Nan, Taiwan.