Critical Survey: Ceridian HCM (NYSE:CDAY) vs. Presto Automation (NASDAQ:PRST)

Risk and Volatility

Ceridian HCM has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500. Comparatively, Presto Automation has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.

Earnings and Valuation

This table compares Ceridian HCM and Presto Automation”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ceridian HCM	$1.45 billion	7.05	-$73.40 million	$0.03	2,182.33
Presto Automation	$19.05 million	0.00	-$34.48 million	($1.23)	0.00

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

Insider & Institutional Ownership

20.9% of Presto Automation shares are owned by institutional investors. 4.5% of Ceridian HCM shares are owned by company insiders. Comparatively, 10.0% of Presto Automation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ceridian HCM	0.28%	2.03%	0.51%
Presto Automation	N/A	N/A	N/A

Summary

Ceridian HCM beats Presto Automation on 8 of the 11 factors compared between the two stocks.

About Ceridian HCM

Ceridian HCM Holding Inc., together with its subsidiaries, operates as a human capital management (HCM) software company in the United States, Canada, and internationally. It offers Dayforce, a cloud HCM platform that provides human resources, payroll, benefits, workforce management, and talent management functionality; and Powerpay, a cloud HR and payroll solution for the small business market. The company also provides Bureau solutions for payroll and payroll-related services. It sells its solutions through direct sales force and third-party channels. The company was incorporated in 2013 and is headquartered in Minneapolis, Minnesota.

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.