Presto Automation (NASDAQ:PRST – Get Free Report) and REX IncomeMax Option Strategy ETF (NASDAQ:ULTI – Get Free Report) are both small-cap business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, earnings, analyst recommendations, valuation and institutional ownership.
Analyst Recommendations
This is a breakdown of recent recommendations for Presto Automation and REX IncomeMax Option Strategy ETF, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Presto Automation | 0 | 0 | 0 | 0 | 0.00 |
| REX IncomeMax Option Strategy ETF | 0 | 8 | 1 | 0 | 2.49 |
REX IncomeMax Option Strategy ETF has a consensus price target of $13.45, suggesting a potential upside of 0.00%.
Earnings & 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) | N/A |
| REX IncomeMax Option Strategy ETF | $1.14 billion | 0.02 | $65.14 million | $2.07 | 6.50 |
REX IncomeMax Option Strategy ETF has higher revenue and earnings than Presto Automation. Presto Automation is trading at a lower price-to-earnings ratio than REX IncomeMax Option Strategy ETF, 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. Comparatively, 91.2% of REX IncomeMax Option Strategy ETF shares are owned by institutional investors. 10.0% of Presto Automation shares are owned by company insiders. Comparatively, 3.0% of REX IncomeMax Option Strategy ETF shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Volatility and Risk
Presto Automation has a beta of -2.9, indicating that its share price is 390% less volatile than the S&P 500. Comparatively, REX IncomeMax Option Strategy ETF has a beta of 3.01, indicating that its share price is 201% more volatile than the S&P 500.
Profitability
This table compares Presto Automation and REX IncomeMax Option Strategy ETF’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 |
| REX IncomeMax Option Strategy ETF | 4.78% | 8.84% | 3.38% |
Summary
REX IncomeMax Option Strategy ETF beats Presto Automation on 11 of the 12 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 REX IncomeMax Option Strategy ETF
The Ultimate Software Group, Inc. provides cloud-based human capital management solutions to enterprise companies, mid-market companies, and companies in the strategic market in the United States, Canada, Europe, the Asia Pacific, and internationally. Its UltiPro software solution delivers the functionality businesses need to manage the employee life cycle from recruitment to retirement. The company's UltiPro solution includes feature sets for talent acquisition and onboarding, human resources (HR) service delivery and management, benefits management and online enrollment, payroll, performance management, employee engagement surveying, compensation management with salary planning, budgeting, incentive award planning, succession management, learning management, reporting and analytical decision-making and predictive tools and time capture, scheduling, attendance tracking, and absence accruals; and has role-based features for HR professionals, executives, managers, administrators, and employees. Its UltiPro software solution is delivered through software-as-a-service. The company also provides professional services, and customer support and product maintenance services. It markets its products and services to manufacturing, food services, sports, technology, finance, insurance, retail, real estate, transportation, communications, healthcare, and other services industries primarily through direct sales force. The company was founded in 1990 and is headquartered in Weston, Florida.
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