Peraso (NASDAQ:PRSO) and Silicon Laboratories (NASDAQ:SLAB) Critical Contrast

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

Profitability

This table compares Peraso and Silicon Laboratories’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Peraso	-142.26%	-374.33%	-156.30%
Silicon Laboratories	-32.69%	-10.46%	-9.12%

Earnings and Valuation

This table compares Peraso and Silicon Laboratories”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Peraso	$13.75 million	0.22	-$16.80 million	($16.41)	-0.05
Silicon Laboratories	$584.39 million	8.01	-$191.01 million	($5.94)	-24.29

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

Insider & Institutional Ownership

77.6% of Peraso shares are owned by institutional investors. 3.9% of Peraso shares are owned by insiders. Comparatively, 1.7% of Silicon Laboratories shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Peraso has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500. Comparatively, Silicon Laboratories has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Peraso and Silicon Laboratories, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peraso	0	0	2	0	3.00
Silicon Laboratories	0	5	6	0	2.55

Peraso currently has a consensus target price of $3.38, suggesting a potential upside of 292.49%. Silicon Laboratories has a consensus target price of $136.20, suggesting a potential downside of 5.61%. Given Peraso’s stronger consensus rating and higher possible upside, analysts clearly believe Peraso is more favorable than Silicon Laboratories.

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 Silicon Laboratories

Silicon Laboratories Inc., a fabless semiconductor company, provides various analog-intensive mixed-signal solutions in the United States, China, Taiwan, and internationally. The company's products include wireless microcontrollers and sensor products. Its products are used in various electronic products in a range of applications for the industrial Internet of Things (IoT), including industrial automation and control, smart buildings, access control, HVAC control, and industrial wearables and power tools; smart cities applications, such as smart metering, smart street lighting, renewable energy, electric vehicle supply equipment, and smart agriculture; commercial IoT applications, including smart lighting, asset tracking, electronic shelf labels, theft protection, and enterprise access points; smart home applications, comprising home automation/security systems, smart speakers, smart lighting, HVAC control, smart cameras, smart appliances, smart home sensing, smart locks, and window/blind controls; and connected health applications, including diabetes management, consumer health and fitness, elderly care, patient monitoring, and activity tracking; as well as in commercial building automation, consumer electronics, and medical instrumentation. The company sells its products through its direct sales force, as well as through a network of independent sales representatives and distributors. Silicon Laboratories Inc. was founded in 1996 and is headquartered in Austin, Texas.