Analyzing Autodesk (NASDAQ:ADSK) and Presto Automation (NASDAQ:PRST)

Presto Automation (NASDAQ:PRST) and Autodesk (NASDAQ:ADSK) are both business services companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Presto Automation	-353.49%	N/A	-203.86%
Autodesk	18.21%	59.41%	12.17%

Institutional & Insider Ownership

20.9% of Presto Automation shares are owned by institutional investors. Comparatively, 90.2% of Autodesk shares are owned by institutional investors. 10.0% of Presto Automation shares are owned by company insiders. Comparatively, 0.1% of Autodesk 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 & Risk

Presto Automation has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, Autodesk has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Presto Automation and Autodesk, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Presto Automation	0	1	1	0	2.50
Autodesk	0	8	11	1	2.65

Presto Automation presently has a consensus price target of $1.31, suggesting a potential upside of 54,483.33%. Autodesk has a consensus price target of $292.95, suggesting a potential downside of 4.13%. Given Presto Automation’s higher probable upside, equities research analysts clearly believe Presto Automation is more favorable than Autodesk.

Valuation and Earnings

This table compares Presto Automation and Autodesk”s 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	0.01	-$34.48 million	($1.23)	0.00
Autodesk	$5.50 billion	11.95	$906.00 million	$4.89	62.49

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

Summary

Autodesk beats Presto Automation on 13 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 Autodesk

Autodesk, Inc. provides 3D design, engineering, and entertainment technology solutions worldwide. The company offers AutoCAD Civil 3D, a surveying, design, analysis, and documentation solution for civil engineering, including land development, transportation, and environmental projects; BuildingConnected, a SaaS preconstruction solution; AutoCAD, a software for professional design, drafting, detailing, and visualization; AutoCAD LT, a drafting and detailing software; computer-aided manufacturing (CAM) software for computer numeric control machining, inspection, and modelling for manufacturing; Fusion 360, a 3D CAD, CAM, and computer-aided engineering tool; and Industry Collections tools for professionals in architecture, engineering and construction, product design and manufacturing, and media and entertainment collection industries. It also provides Inventor tools for 3D mechanical design, simulation, analysis, tooling, visualization, and documentation; Vault, a data management software to manage data in one central location, accelerate design processes, and streamline internal/external collaboration; Maya and 3ds Max software products that offer 3D modeling, animation, effects, rendering, and compositing solutions; and ShotGrid, a cloud-based software for review and production tracking in the media and entertainment industry. It sells its products and services to customers directly, as well as through a network of resellers and distributors. Autodesk, Inc. was incorporated in 1982 and is headquartered in San Francisco, California.