Head-To-Head Contrast: Peraso (NASDAQ:PRSO) vs. Semiconductor Manufacturing International (OTCMKTS:SMICY)

Peraso (NASDAQ:PRSO) and Semiconductor Manufacturing International (OTCMKTS:SMICY) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, dividends, valuation and profitability.

Risk and Volatility

Peraso has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500. Comparatively, Semiconductor Manufacturing International has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.

Insider & Institutional Ownership

77.6% of Peraso shares are owned by institutional investors. Comparatively, 0.0% of Semiconductor Manufacturing International shares are owned by institutional investors. 3.9% of Peraso shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Peraso and Semiconductor Manufacturing International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peraso	0	0	2	0	3.00
Semiconductor Manufacturing International	0	0	0	0	0.00

Peraso currently has a consensus price target of $3.38, suggesting a potential upside of 142.81%. Given Peraso’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Peraso is more favorable than Semiconductor Manufacturing International.

Profitability

This table compares Peraso and Semiconductor Manufacturing International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Peraso	-142.26%	-374.33%	-156.30%
Semiconductor Manufacturing International	14.53%	4.00%	2.62%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Peraso	$12.73 million	0.38	-$16.80 million	($16.41)	-0.08
Semiconductor Manufacturing International	$3.12 billion	5.18	$234.68 million	$0.21	66.67

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

Summary

Semiconductor Manufacturing International beats Peraso on 8 of the 14 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 Semiconductor Manufacturing International

Semiconductor Manufacturing International Corporation, an investment holding company, engages in the computer-aided design, manufacture, testing, packaging, and trading of integrated circuits (IC) and other semiconductor services. It is also involved in wafer manufacturing, wafer probing and bumping, technology development, design service, mask manufacturing, and assembly and final testing of integrated circuits; and sale of self-manufactured products. In addition, the company designs and manufactures semiconductor masks; and offers marketing related services. It operates in North America, China, Hong Kong, and Eurasia. The company serves integrated device manufacturers, fabless semiconductor companies, and system companies. Semiconductor Manufacturing International Corporation was founded in 2000 and is headquartered in Shanghai, the People's Republic of China.