Head to Head Comparison: Analog Devices (NASDAQ:ADI) versus Peraso (NASDAQ:PRSO)

Peraso (NASDAQ:PRSO) and Analog Devices (NASDAQ:ADI) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their risk, earnings, institutional ownership, dividends, analyst recommendations, valuation and profitability.

Insider and Institutional Ownership

77.6% of Peraso shares are held by institutional investors. Comparatively, 86.8% of Analog Devices shares are held by institutional investors. 5.3% of Peraso shares are held by insiders. Comparatively, 0.3% of Analog Devices shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Peraso has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500. Comparatively, Analog Devices has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Peraso and Analog Devices, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peraso	0	0	2	0	3.00
Analog Devices	0	5	17	0	2.77

Peraso currently has a consensus price target of $3.88, indicating a potential upside of 176.79%. Analog Devices has a consensus price target of $251.45, indicating a potential upside of 10.88%. Given Peraso’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Peraso is more favorable than Analog Devices.

Valuation and Earnings

This table compares Peraso and Analog Devices”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Peraso	$13.37 million	0.28	-$16.80 million	($21.15)	-0.07
Analog Devices	$9.70 billion	11.60	$3.31 billion	$4.28	52.99

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

Profitability

This table compares Peraso and Analog Devices’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Peraso	-119.82%	-242.83%	-129.76%
Analog Devices	17.07%	9.47%	6.89%

Summary

Analog Devices beats Peraso on 10 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 Analog Devices

Analog Devices, Inc. designs, manufactures, tests, and markets integrated circuits (ICs), software, and subsystems products in the United States, rest of North and South America, Europe, Japan, China, and rest of Asia. The company provides data converter products, which translate real-world analog signals into digital data, as well as translates digital data into analog signals; power management and reference products for power conversion, driver monitoring, sequencing, and energy management applications in the automotive, communications, industrial, and consumer markets; and power ICs that include performance, integration, and software design simulation tools for accurate power supply designs. It also offers amplifiers to condition analog signals; and radio frequency and microwave ICs to support cellular infrastructure; and micro-electro-mechanical systems technology solutions, including accelerometers used to sense acceleration, gyroscopes for sense rotation, inertial measurement units to sense multiple degrees of freedom, and broadband switches for radio and instrument systems, as well as isolators. In addition, the company provides digital signal processing and system products for numeric calculations. It serves clients in the industrial, automotive, consumer, instrumentation, aerospace, defense and healthcare, and communications markets through a direct sales force, third-party distributors, and independent sales representatives, as well as online. Analog Devices, Inc. was incorporated in 1965 and is headquartered in Wilmington, Massachusetts.