Presto Automation (NASDAQ:PRST – Get Free Report) and Semrush (NASDAQ:SEMR – Get Free Report) are both small-cap business services companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.
Institutional & Insider Ownership
20.9% of Presto Automation shares are owned by institutional investors. Comparatively, 32.9% of Semrush shares are owned by institutional investors. 10.0% of Presto Automation shares are owned by company insiders. Comparatively, 55.6% of Semrush shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Presto Automation and Semrush”s gross revenue, earnings per share (EPS) and 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) | 0.00 |
| Semrush | $396.02 million | 3.54 | $950,000.00 | $0.05 | 189.20 |
Semrush has higher revenue and earnings than Presto Automation. Presto Automation is trading at a lower price-to-earnings ratio than Semrush, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings for Presto Automation and Semrush, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Presto Automation | 0 | 0 | 0 | 0 | 0.00 |
| Semrush | 0 | 1 | 6 | 1 | 3.00 |
Semrush has a consensus price target of $16.43, indicating a potential upside of 73.66%. Given Semrush’s stronger consensus rating and higher possible upside, analysts plainly believe Semrush is more favorable than Presto Automation.
Profitability
This table compares Presto Automation and Semrush’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 |
| Semrush | 3.29% | 4.93% | 3.29% |
Volatility and Risk
Presto Automation has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, Semrush has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500.
Summary
Semrush beats Presto Automation on 15 of the 15 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 Semrush
Semrush Holdings, Inc. develops an online visibility management software-as-a-service platform in the United States, the United Kingdom, and internationally. The company enables companies to identify and reach the right audience for their content through the right channels. Its platform enables the company's customers to understand trends and act upon insights to enhance the online visibility, and drive traffic to their websites and social media pages, as well as online listings, distribute targeted content to their customers, and measure the digital marketing campaigns. The company serves small and midsize businesses, enterprises, and marketing agencies, including consumer internet, digital media, education, financial services, healthcare, retail, software, telecommunications, and others. Semrush Holdings, Inc. was founded in 2008 and is headquartered in Boston, Massachusetts.
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