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fully agree - i hold both stocks for the same reasons you mentioned but PRSM is frankly super undervalued
I did quite a lot of research into the RPA market last month with a view to potentially investing in PRSM, given the fact that it is valued at a fraction of PATH. This research actually led me to invest in PATH since it has become the undisputed market leader for a reason. However, I still retained a relatively favourable view of PRSM and decided to put it on my watch list.
A couple of fairly minor things led me to be initially wary of PRSM such as Jupiter being a large shareholder. While PRSM is behind PATH and at a potential disadvantage in winning a larger share of new business that does not mean that PATH will start winning PRSM clients. For a start, RPA solutions are sticky for businesses who start using them. If that was the case PRSM would not be boasting of a 98% retention rate 2 years running, which is the same as PATH's.
Neither does PATH have the resources to sign up all the prospective RPA clients out there in global markets. Furthermore, comparisons between their strengths and weaknesses show PRSM to actually have some advantages that would cause businesses to favour them. This is without taking into account the improvements made from recent investments and PRSM's efforts to play catch up. The world is a big place and there is plenty of scope for PRSM to target markets distinct from those preferred by PATH, such as the Wall Street investment firms that they can engage with due to the proximity of their NY office.
As I said yesterday this is not a winner takes all market. There are plenty of opportunities for healthy competition among a variety of market players. The market potential has led Microsoft to develop its own offering in the space and Google and Amazon are also getting involved. These players are probably the biggest threat to both PATH and PRSM but again I think this threat can often be overestimated. And anyway who is to say that another company would not be interested in buying PRSM for its existing client bank.
So with all that I was very happy for the chance to buy into this company due to my assessment of its risk reward profile. The company has done extremely well over the last 12 months in growing its revenue by 35% at a time when most companies have put spending decisions on hold due to the pandemic uncertainty. Now that semblances of normality are returning the company is going to be well placed to take advantage. For example, more and more companies are questioning the need to pay for office space and yet they remain suspicious of what their staff get up to working from home. I don't believe the PRSM robots will be playing video games or watching the Euros in the background while working.