Peraso (NASDAQ:PRSO – Get Free Report) and Inspired Entertainment (NASDAQ:INSE – Get Free Report) are both small-cap business services companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Peraso and Inspired Entertainment, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Peraso | 0 | 0 | 1 | 0 | 3.00 |
| Inspired Entertainment | 0 | 1 | 3 | 2 | 3.17 |
Peraso currently has a consensus target price of $3.00, suggesting a potential upside of 150.00%. Inspired Entertainment has a consensus target price of $13.00, suggesting a potential upside of 63.52%. Given Peraso’s higher probable upside, equities research analysts plainly believe Peraso is more favorable than Inspired Entertainment.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Peraso | -58.67% | -203.53% | -83.32% |
| Inspired Entertainment | 24.68% | -181.89% | 18.18% |
Volatility and Risk
Peraso has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Inspired Entertainment has a beta of 1.65, suggesting that its stock price is 65% more volatile than the S&P 500.
Institutional & Insider Ownership
77.6% of Peraso shares are held by institutional investors. Comparatively, 77.4% of Inspired Entertainment shares are held by institutional investors. 3.9% of Peraso shares are held by company insiders. Comparatively, 13.1% of Inspired Entertainment shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Peraso and Inspired Entertainment”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Peraso | $14.57 million | 0.41 | -$10.73 million | ($3.33) | -0.36 |
| Inspired Entertainment | $297.10 million | 0.72 | $64.80 million | $2.52 | 3.15 |
Inspired Entertainment has higher revenue and earnings than Peraso. Peraso is trading at a lower price-to-earnings ratio than Inspired Entertainment, indicating that it is currently the more affordable of the two stocks.
Summary
Inspired Entertainment beats Peraso on 13 of the 15 factors compared between the two stocks.
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.
About Inspired Entertainment
Inspired Entertainment, Inc., a gaming technology company, engages in the supply of content, platform, and other products and services to regulated lottery, betting, and gaming operators worldwide. It operates in four segments: Gaming, Virtual Sports, Interactive, and Leisure. The Gaming segment supplies gaming terminals and software to betting offices, casinos, gaming halls, and high street adult gaming centers; a portfolio of games through its digital terminals under the Centurion and Super Hot Fruits names; and traditional casino games, such as roulette, blackjack, and number games. The Virtual Sports segment designs, develops, markets, and distributes ultra-high-definition sports games, including greyhounds, tennis, motor racing, cycling, cricket, speedway, golf, and dart, and other horse racing games under the V-Play Soccer, V-Play Women's Soccer, V-Play Football, V-Play Basketball, V-Play Baseball, and V-Play NFLA names. The Interactive segment provides a range of random number generated casino content from feature-rich bonus games to European-style casino free spins and table games. The Leisure segment supplies gaming terminals and amusement machines in pubs, bingo halls, and adult gaming centers, as well as family entertainment centers, bowling centers, and other entertainment venues. Inspired Entertainment, Inc. is headquartered in New York, New York.
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