Diodes (NASDAQ:DIOD) vs. Peraso (NASDAQ:PRSO) Head to Head Comparison

Peraso (NASDAQ:PRSO) and Diodes (NASDAQ:DIOD) are both business services companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.

Analyst Ratings

This is a summary of recent recommendations for Peraso and Diodes, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peraso	0	0	1	0	3.00
Diodes	0	3	2	0	2.40

Peraso presently has a consensus price target of $40.00, suggesting a potential upside of 2,658.62%. Diodes has a consensus price target of $72.40, suggesting a potential upside of 2.87%. Given Peraso’s stronger consensus rating and higher probable upside, equities analysts plainly believe Peraso is more favorable than Diodes.

Profitability

This table compares Peraso and Diodes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Peraso	-122.15%	-144.29%	-97.54%
Diodes	13.67%	12.79%	9.54%

Volatility & Risk

Peraso has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500. Comparatively, Diodes has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500.

Institutional & Insider Ownership

77.6% of Peraso shares are held by institutional investors. Comparatively, 99.2% of Diodes shares are held by institutional investors. 5.3% of Peraso shares are held by insiders. Comparatively, 2.6% of Diodes shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Peraso and Diodes’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Peraso	$13.75 million	0.15	-$16.80 million	($26.08)	-0.06
Diodes	$1.66 billion	1.95	$227.18 million	$4.91	14.33

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

Summary

Diodes beats Peraso on 10 of the 14 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 Diodes

Diodes Incorporated, together with its subsidiaries, manufactures and supplies application-specific standard products in the broad discrete, logic, analog, and mixed-signal semiconductor markets worldwide. The company offers discrete semiconductor products, such as MOSFETs, SiC MOSFETs; data line protection, power line protection, thyristers, USB Type-C protection, and transient voltage suppressors; Schottky, small signal switching, Zener, and SiC diodes; bridges, super barrier, Schottky, Schottky bridge, and fast/ultra-fast rectifiers; and bipolar, avalanche, gate driver, and pre-bias transistors. It also provides analog products, including power management devices comprising AC-DC and DC-DC converters, USB power switches, low dropout, photocoupler and linear voltage regulators; standard linear devices consisting of operational amplifiers and comparators, current monitors, voltage references, and reset generators; LED lighting drivers; audio amplifiers; and sensor products, such as hall-effect sensors and motor drivers. In addition, the company offers mixed-signal products, such as high speed mux/demux, digital switches, interface, redrivers, universal level shifters/voltage translators, clock ICs and packet switches; standard logic products comprising low-voltage complementary metal-oxide-semiconductor (CMOS) and advanced high-speed CMOS devices; ultra-low power CMOS logic; and analog switches; multichip products and co-packaged discrete, analog and mixed-signal silicon in miniature packages; and silicon and silicon epitaxial wafers used in manufacturing frequency control products and contact images sensors. It serves the industrial, automotive, computing, communications, and consumer markets through direct sales, marketing personnel, independent sales representatives, and distributors. The company was incorporated in 1959 and is headquartered in Plano, Texas.