Critical Analysis: Baijiayun Group (NASDAQ:RTC) and Presto Automation (NASDAQ:PRST)

Presto Automation (NASDAQ:PRST) and Baijiayun Group (NASDAQ:RTC) are both small-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Volatility & Risk

Presto Automation has a beta of 1.63, indicating that its share price is 63% more volatile than the S&P 500. Comparatively, Baijiayun Group has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Presto Automation and Baijiayun Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Presto Automation	0	1	2	0	2.67
Baijiayun Group	0	0	0	0	N/A

Presto Automation presently has a consensus price target of $2.54, indicating a potential upside of 1,419.14%. Given Presto Automation’s higher possible upside, research analysts clearly believe Presto Automation is more favorable than Baijiayun Group.

Earnings & Valuation

This table compares Presto Automation and Baijiayun Group’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Presto Automation	$26.14 million	0.68	-$34.48 million	($1.23)	-0.14
Baijiayun Group	$82.25 million	0.04	-$5.73 million	N/A	N/A

Baijiayun Group has higher revenue and earnings than Presto Automation.

Profitability

This table compares Presto Automation and Baijiayun Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Presto Automation	-353.49%	N/A	-180.86%
Baijiayun Group	N/A	N/A	N/A

Insider and Institutional Ownership

20.9% of Presto Automation shares are held by institutional investors. Comparatively, 3.4% of Baijiayun Group shares are held by institutional investors. 36.4% of Presto Automation 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.

Summary

Presto Automation beats Baijiayun Group on 6 of the 10 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 Baijiayun Group

Baijiayun Group Ltd engages in the video-centric technology solution business in China. Its solutions include video-centric SaaS/PaaS solutions, including live streaming solution, VoD solution, and real-time communications solution for education, finance, medical services, automotive, and IT industries; video-centric cloud related solutions, such as online school, video conferencing, and enterprise training solutions for educational institutions, IT, finance, media and advertising, and e-commerce industries; and video-centric industry AI solutions for education, retail, public affairs, and industrial manufacturing industries. The company was founded in 2017 and is headquartered in Nanjing, the People's Republic of China.