Critical Review: Advantest (OTCMKTS:ATEYY) vs. Peraso (NASDAQ:PRSO)
Advantest (OTCMKTS:ATEYY – Get Rating) and Peraso (NASDAQ:PRSO – Get Rating) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.
Earnings and Valuation
This table compares Advantest and Peraso’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Advantest | $3.71 billion | 3.85 | $776.98 million | N/A | N/A |
| Peraso | $5.68 million | 3.51 | -$10.91 million | ($0.59) | -1.54 |
Advantest has higher revenue and earnings than Peraso.
Insider and Institutional Ownership
3.7% of Peraso shares are held by institutional investors. 5.7% of Peraso shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Advantest and Peraso’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Advantest | 24.39% | 39.19% | 23.75% |
| Peraso | -119.18% | -61.31% | -52.79% |
Analyst Ratings
This is a summary of current ratings and recommmendations for Advantest and Peraso, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Advantest | 0 | 0 | 0 | 0 | N/A |
| Peraso | 0 | 0 | 1 | 0 | 3.00 |
Peraso has a consensus price target of $2.50, indicating a potential upside of 174.42%. Given Peraso’s higher possible upside, analysts clearly believe Peraso is more favorable than Advantest.
Risk and Volatility
Advantest has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, Peraso has a beta of 2.13, suggesting that its share price is 113% more volatile than the S&P 500.
Summary
Advantest beats Peraso on 6 of the 11 factors compared between the two stocks.
About Advantest
Advantest Corp. engages in the manufacture and sale of mechatronic products. It operates through the following segments: Semiconductor and Component Test Systems, Mechatronic and Others. The Semiconductor and Component Test Systems segment offers test systems for semiconductors and electronic component industries. The Mechatronic segment provides the semiconductor devices handling mechatronic applied products such as testers, handlers, device interfaces, and nanotechnology products. The Others segment involves in the customer solutions support, and equipment leasing services. The company was founded by Ikuo Takeda in December 1954 and is headquartered in Tokyo, Japan.
About Peraso
Peraso, Inc. engages in the development and sale of semiconductor devices and modules based on its proprietary semiconductor devices and performance of non-recurring engineering, services and licensing of intellectual property. It operates through the following geographical segments: North America, Hong Kong, Taiwan, and Rest of World. The company was founded in 1991 and is headquartered in San Jose, CA.
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