Head-To-Head Contrast: Peraso (NASDAQ:PRSO) vs. Sigma Designs (OTCMKTS:SIGM)

Peraso (NASDAQ:PRSO) and Sigma Designs (OTCMKTS:SIGM) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Analyst Ratings

This is a breakdown of current ratings and target prices for Peraso and Sigma Designs, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peraso	0	0	1	0	3.00
Sigma Designs	0	0	0	0	N/A

Peraso currently has a consensus price target of $40.00, suggesting a potential upside of 2,697.20%. Given Peraso’s higher possible upside, analysts clearly believe Peraso is more favorable than Sigma Designs.

Valuation & Earnings

This table compares Peraso and Sigma Designs’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Peraso	$13.75 million	0.15	-$16.80 million	($26.08)	-0.05
Sigma Designs	$65.90 million	N/A	-$120.04 million	N/A	N/A

Peraso has higher earnings, but lower revenue than Sigma Designs.

Profitability

This table compares Peraso and Sigma Designs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Peraso	-122.15%	-172.90%	-108.39%
Sigma Designs	N/A	N/A	N/A

Volatility & Risk

Peraso has a beta of 1.84, meaning that its share price is 84% more volatile than the S&P 500. Comparatively, Sigma Designs has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500.

Insider & Institutional Ownership

77.6% of Peraso shares are owned by institutional investors. 5.3% of Peraso shares are owned by insiders. Comparatively, 4.5% of Sigma Designs shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Peraso beats Sigma Designs on 6 of the 10 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 Sigma Designs

Sigma Designs, Inc., an integrated system-on-chip solutions provider, provides intelligent platforms for use in the home entertainment, and home and industrial control appliances. The company offers mobile Internet of Things solutions used primarily for tracking applications, such as small tags that can be attached to track pets, keys, children, luggage, and vehicles. It also offers legacy products; and software development kits and engineering support services for hardware and software. The company markets and sells its products through direct sales force, manufacturer representatives, distributors, and resellers to end-product manufacturers, original equipment manufacturers, and original design manufacturers in Asia, North America, Europe, and internationally. Sigma Designs, Inc. was founded in 1982 and is headquartered in Fremont, California.