Contrasting Peraso (NASDAQ:PRSO) & Semiconductor Manufacturing International (OTCMKTS:SMICY)

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Semiconductor Manufacturing International	$3.12 billion	5.18	$234.68 million	$0.21	66.67
Peraso	$12.73 million	0.32	-$16.80 million	($16.41)	-0.07

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.

Analyst Ratings

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

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

Peraso has a consensus price target of $3.38, indicating a potential upside of 190.95%. Given Peraso’s stronger consensus rating and higher possible upside, analysts clearly believe Peraso is more favorable than Semiconductor Manufacturing International.

Profitability

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

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

Volatility & Risk

Semiconductor Manufacturing International has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500. Comparatively, Peraso has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500.

Institutional & Insider Ownership

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

Summary

Semiconductor Manufacturing International beats Peraso on 8 of the 14 factors compared between the two stocks.

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.

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.