Peraso (NASDAQ:PRSO) vs. United Microelectronics (NYSE:UMC) Head to Head Analysis

United Microelectronics (NYSE:UMC) and Peraso (NASDAQ:PRSO) are both technology companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, valuation and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
United Microelectronics	31.96%	20.12%	13.53%
Peraso	-85.63%	-223.38%	-153.27%

Volatility and Risk

United Microelectronics has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500. Comparatively, Peraso has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.

Earnings & Valuation

This table compares United Microelectronics and Peraso”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Microelectronics	$7.57 billion	5.54	$1.29 billion	$1.08	15.43
Peraso	$12.19 million	0.49	-$4.75 million	($0.68)	-0.58

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

Insider & Institutional Ownership

5.0% of United Microelectronics shares are held by institutional investors. Comparatively, 77.6% of Peraso shares are held by institutional investors. 8.0% of United Microelectronics shares are held by company insiders. Comparatively, 1.7% of Peraso shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for United Microelectronics and Peraso, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Microelectronics	3	3	2	0	1.88
Peraso	1	0	2	0	2.33

United Microelectronics currently has a consensus price target of $36.79, suggesting a potential upside of 120.81%. Peraso has a consensus price target of $3.08, suggesting a potential upside of 677.05%. Given Peraso’s stronger consensus rating and higher possible upside, analysts clearly believe Peraso is more favorable than United Microelectronics.

Summary

United Microelectronics beats Peraso on 10 of the 13 factors compared between the two stocks.

About United Microelectronics

United Microelectronics Corporation operates as a semiconductor wafer foundry in Taiwan, China, Hong Kong, Japan, Korea, the United States, Europe, and internationally. The company provides circuit design, mask tooling, wafer fabrication, and assembly and testing services. It serves fabless design companies and integrated device manufacturers. United Microelectronics Corporation was incorporated in 1980 and is headquartered in Hsinchu City, Taiwan.

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.