Contrasting GLOBALFOUNDRIES (NASDAQ:GFS) and Peraso (NASDAQ:PRSO)

GLOBALFOUNDRIES (NASDAQ:GFSGet Free Report) and Peraso (NASDAQ:PRSOGet Free Report) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
GLOBALFOUNDRIES 12.66% 8.78% 5.33%
Peraso -135.95% -201.79% -118.81%

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GLOBALFOUNDRIES $7.39 billion 3.84 $1.02 billion $1.62 31.54
Peraso $13.75 million 0.26 -$16.80 million ($21.15) -0.06

GLOBALFOUNDRIES has higher revenue and earnings than Peraso. Peraso is trading at a lower price-to-earnings ratio than GLOBALFOUNDRIES, 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 GLOBALFOUNDRIES and Peraso, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GLOBALFOUNDRIES 0 7 7 0 2.50
Peraso 0 0 2 0 3.00

GLOBALFOUNDRIES presently has a consensus price target of $60.62, indicating a potential upside of 18.62%. Peraso has a consensus price target of $21.88, indicating a potential upside of 1,569.85%. Given Peraso’s stronger consensus rating and higher possible upside, analysts clearly believe Peraso is more favorable than GLOBALFOUNDRIES.

Volatility & Risk

GLOBALFOUNDRIES has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500. Comparatively, Peraso has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500.

Institutional and Insider Ownership

77.6% of Peraso shares are owned by institutional investors. 5.3% of Peraso shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

GLOBALFOUNDRIES beats Peraso on 9 of the 14 factors compared between the two stocks.

About GLOBALFOUNDRIES

(Get Free Report)

GLOBALFOUNDRIES Inc. operates as a semiconductor foundry worldwide. The company manufactures a range of semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units; and offers mainstream wafer fabrication services and technologies. The company was founded in 2009 and is based in Malta, New York.

About Peraso

(Get Free Report)

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.

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