Peraso (NASDAQ:PRSO) & Disco (OTCMKTS:DSCSY) Critical Comparison

by · The Cerbat Gem

Disco (OTCMKTS:DSCSYGet Free Report) and Peraso (NASDAQ:PRSOGet Free Report) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.

Volatility and Risk

Disco has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500. Comparatively, Peraso has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.

Profitability

This table compares Disco and Peraso’s net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
Disco31.65%26.03%20.56%
Peraso-85.63%-223.38%-153.27%

Insider & Institutional Ownership

0.0% of Disco shares are owned by institutional investors. Comparatively, 77.6% of Peraso shares are owned by institutional investors. 1.7% of Peraso shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings for Disco and Peraso, as provided by MarketBeat.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Disco01102.50
Peraso10212.75

Peraso has a consensus price target of $3.08, suggesting a potential upside of 535.74%. Given Peraso’s stronger consensus rating and higher possible upside, analysts clearly believe Peraso is more favorable than Disco.

Earnings and Valuation

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

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Disco$2.90 billion12.51$894.45 million$0.8738.45
Peraso$8.37 million0.88-$4.75 million($0.68)-0.71

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

Summary

Disco beats Peraso on 9 of the 15 factors compared between the two stocks.

About Disco

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Disco Corporation manufactures and sells precision cutting, grinding, and polishing machines in Japan and internationally. Its precision machines include dicing saws, laser saws, grinders, polishers, wafer mounters, die separators, surface planers, and waterjet saws. The company also offers precision processing tools, such as dicing blades, grinding wheels, and dry polishing wheels; and other products, such as accessory equipment. In addition, it is involved in the disassembly and recycling of precision cutting, grinding, and polishing machines, as well as provides training services for the maintenance and operation of its products. Further, the company leases precision machines; and purchases and sells used machines. Additionally, it manufactures precision diamond abrasive tools, as well as offers chargeable processing services. The company was founded in 1937 and is headquartered in Tokyo, Japan.

About Peraso

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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.