Analyzing Peraso (NASDAQ:PRSO) and Disco (OTCMKTS:DSCSY)

Disco (OTCMKTS:DSCSY) and Peraso (NASDAQ:PRSO) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.

Valuation and Earnings

This table compares Disco and Peraso”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Disco	$2.90 billion	12.84	$894.45 million	$0.87	39.47
Peraso	$12.19 million	0.67	-$4.75 million	($0.68)	-0.79

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

Analyst Recommendations

This is a summary of current ratings and price targets for Disco and Peraso, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Disco	0	1	1	0	2.50
Peraso	1	0	2	1	2.75

Peraso has a consensus price target of $3.08, indicating a potential upside of 471.62%. Given Peraso’s stronger consensus rating and higher possible upside, analysts clearly believe Peraso is more favorable than Disco.

Insider and Institutional Ownership

0.0% of Disco shares are owned by institutional investors. Comparatively, 77.6% of Peraso shares are owned by institutional investors. 1.7% of Peraso 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Disco	31.65%	26.03%	20.56%
Peraso	-85.63%	-223.38%	-153.27%

Risk & Volatility

Disco has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500. Comparatively, Peraso has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.

Summary

Disco beats Peraso on 9 of the 15 factors compared between the two stocks.

About Disco

Disco Corporation manufactures and sells precision cutting, grinding, and polishing machines in Japan and internationally. Its precision machines include dicing saws, laser saws, grinders, polishers, wafer mounters, die separators, surface planers, and waterjet saws. The company also offers precision processing tools, such as dicing blades, grinding wheels, and dry polishing wheels; and other products, such as accessory equipment. In addition, it is involved in the disassembly and recycling of precision cutting, grinding, and polishing machines, as well as provides training services for the maintenance and operation of its products. Further, the company leases precision machines; and purchases and sells used machines. Additionally, it manufactures precision diamond abrasive tools, as well as offers chargeable processing services. The company was founded in 1937 and is headquartered in Tokyo, Japan.

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.