Head to Head Contrast: Silicon Laboratories (NASDAQ:SLAB) vs. Peraso (NASDAQ:PRSO)

Silicon Laboratories (NASDAQ:SLAB) and Peraso (NASDAQ:PRSO) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.

Risk and Volatility

Silicon Laboratories has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500. Comparatively, Peraso has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Silicon Laboratories	-32.69%	-10.46%	-9.12%
Peraso	-142.26%	-374.33%	-156.30%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Silicon Laboratories	$584.39 million	8.63	-$191.01 million	($5.94)	-26.15
Peraso	$13.75 million	0.24	-$16.80 million	($16.41)	-0.06

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Silicon Laboratories and Peraso, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Silicon Laboratories	0	5	6	0	2.55
Peraso	0	0	2	0	3.00

Silicon Laboratories currently has a consensus price target of $136.20, suggesting a potential downside of 12.32%. Peraso has a consensus price target of $3.38, suggesting a potential upside of 260.92%. Given Peraso’s stronger consensus rating and higher probable upside, analysts plainly believe Peraso is more favorable than Silicon Laboratories.

Insider & Institutional Ownership

77.6% of Peraso shares are held by institutional investors. 1.7% of Silicon Laboratories shares are held by insiders. Comparatively, 3.9% of Peraso shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

About Silicon Laboratories

Silicon Laboratories Inc., a fabless semiconductor company, provides various analog-intensive mixed-signal solutions in the United States, China, Taiwan, and internationally. The company's products include wireless microcontrollers and sensor products. Its products are used in various electronic products in a range of applications for the industrial Internet of Things (IoT), including industrial automation and control, smart buildings, access control, HVAC control, and industrial wearables and power tools; smart cities applications, such as smart metering, smart street lighting, renewable energy, electric vehicle supply equipment, and smart agriculture; commercial IoT applications, including smart lighting, asset tracking, electronic shelf labels, theft protection, and enterprise access points; smart home applications, comprising home automation/security systems, smart speakers, smart lighting, HVAC control, smart cameras, smart appliances, smart home sensing, smart locks, and window/blind controls; and connected health applications, including diabetes management, consumer health and fitness, elderly care, patient monitoring, and activity tracking; as well as in commercial building automation, consumer electronics, and medical instrumentation. The company sells its products through its direct sales force, as well as through a network of independent sales representatives and distributors. Silicon Laboratories Inc. was founded in 1996 and is headquartered in Austin, Texas.

About Peraso

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.