Comparing Rockley Photonics (NYSE:RKLY) and Peraso (NASDAQ:PRSO)

Rockley Photonics (NYSE:RKLYGet Rating) and Peraso (NASDAQ:PRSOGet Rating) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, analyst recommendations, earnings, dividends and profitability.

Valuation & Earnings

This table compares Rockley Photonics and Peraso’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rockley Photonics $8.21 million 50.28 -$168.01 million ($0.99) -3.23
Peraso $5.68 million 8.24 -$10.91 million ($0.44) -4.93

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

Profitability

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

Net Margins Return on Equity Return on Assets
Rockley Photonics N/A -236.22% -67.60%
Peraso -92.34% -47.19% -42.03%

Volatility & Risk

Rockley Photonics has a beta of 0.08, indicating that its stock price is 92% less volatile than the S&P 500. Comparatively, Peraso has a beta of 2.33, indicating that its stock price is 133% more volatile than the S&P 500.

Insider & Institutional Ownership

12.4% of Rockley Photonics shares are owned by institutional investors. Comparatively, 5.6% of Peraso shares are owned by institutional investors. 16.2% of Rockley Photonics shares are owned by company insiders. Comparatively, 2.6% of Peraso shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Rockley Photonics and Peraso, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rockley Photonics 0 1 4 0 2.80
Peraso 0 0 0 0 N/A

Rockley Photonics presently has a consensus target price of $11.80, suggesting a potential upside of 268.75%. Given Rockley Photonics’ higher probable upside, equities analysts plainly believe Rockley Photonics is more favorable than Peraso.

Summary

Rockley Photonics beats Peraso on 7 of the 12 factors compared between the two stocks.

Rockley Photonics Company Profile (Get Rating)

Rockley Photonics Holdings Limited develops and supplies silicon photonics in the United Kingdom and internationally. It offers a platform, which comprises photonic integrated circuits in silicon with integrated III-V devices; application-specific electronic integrated circuits; photonic and electronic co-packaging, which are supported by and coupled with biosensing algorithms, artificial intelligence, cloud analytics, firmware/software, system architecture, and hardware design. The company also provides a biosensing platform for consumer wellness, long-term health trend monitoring, patient monitoring, early disease detection, nutrition management, and treatment of certain chronic diseases. Rockley Photonics Holdings Limited was founded in 2013 and is headquartered in Altrincham, the United Kingdom.

Peraso Company Profile (Get Rating)

Peraso Inc. operates as a fabless semiconductor company, develops, markets, and sells semiconductor devices and modules. It focuses on development of millimeter wavelength (mmWave) for the 60 gigahertz, spectrum, and for 5G cellular networks. The company's products include mmWave ICs, including baseband IC, various mmWave radio frequency, integrated circuits, as well as associated antenna technology; and mmWave modules. It also provides accelerator engine products, comprising bandwidth engine for high-performance applications where throughput is critical; and programmable hyperspeed engine to allow user-defined functions or algorithms. In addition, the company offers quad partition rate which allows for parallel accesses to multiple partitions of the memory simultaneously. Its mmWave products enable various applications, such as 5G with low latency and high reliability, multi-gigabit, mmWave links over 25 kilometers, 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.

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