Analyzing Presto Automation (NASDAQ:PRST) & Semrush (NASDAQ:SEMR)

Presto Automation (NASDAQ:PRST) and Semrush (NASDAQ:SEMR) are both small-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.

Earnings and Valuation

This table compares Presto Automation and Semrush”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Presto Automation	$19.05 million	0.00	-$34.48 million	($1.23)	0.00
Semrush	$396.02 million	3.88	$950,000.00	$0.05	207.30

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Presto Automation and Semrush, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Presto Automation	0	0	0	0	0.00
Semrush	0	1	6	1	3.00

Semrush has a consensus target price of $16.43, indicating a potential upside of 58.50%. Given Semrush’s stronger consensus rating and higher probable upside, analysts plainly believe Semrush is more favorable than Presto Automation.

Risk and Volatility

Presto Automation has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, Semrush has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500.

Profitability

This table compares Presto Automation and Semrush’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Presto Automation	N/A	N/A	N/A
Semrush	3.29%	4.93%	3.29%

Institutional & Insider Ownership

20.9% of Presto Automation shares are held by institutional investors. Comparatively, 32.9% of Semrush shares are held by institutional investors. 10.0% of Presto Automation shares are held by insiders. Comparatively, 55.6% of Semrush shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Semrush beats Presto Automation on 15 of the 15 factors compared between the two stocks.

About Presto Automation

Presto Automation Inc. engages in the provision of artificial intelligence (AI) and automation solutions to the restaurant enterprise technology industry in the United States. The company offers Presto Voice, an AI solution to quick service restaurants that completes complex orders, including large orders with multiple menu modifications and add-ons, with limited on-site restaurant staff intervention; and Presto Touch, a pay-at-table tablet solution to casual dining chains that enables self-serve ordering, payment processing, personalization, and gaming experiences for restaurant guests. Presto Automation, Inc. was founded in 2008 and is headquartered in San Carlos, California.

About Semrush

Semrush Holdings, Inc. develops an online visibility management software-as-a-service platform in the United States, the United Kingdom, and internationally. The company enables companies to identify and reach the right audience for their content through the right channels. Its platform enables the company's customers to understand trends and act upon insights to enhance the online visibility, and drive traffic to their websites and social media pages, as well as online listings, distribute targeted content to their customers, and measure the digital marketing campaigns. The company serves small and midsize businesses, enterprises, and marketing agencies, including consumer internet, digital media, education, financial services, healthcare, retail, software, telecommunications, and others. Semrush Holdings, Inc. was founded in 2008 and is headquartered in Boston, Massachusetts.