Cirrus Logic (NASDAQ:CRUS – Get Free Report) and Penguin Solutions (NASDAQ:PENG – Get Free Report) are both mid-cap technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.
Institutional & Insider Ownership
88.0% of Cirrus Logic shares are held by institutional investors. 1.2% of Cirrus Logic shares are held by company insiders. Comparatively, 2.9% of Penguin Solutions shares are held 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.
Earnings & Valuation
This table compares Cirrus Logic and Penguin Solutions”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cirrus Logic | $2.00 billion | 2.84 | $414.41 million | $8.17 | 13.86 |
| Penguin Solutions | $1.37 billion | 1.94 | $25.39 million | $1.41 | 36.71 |
Cirrus Logic has higher revenue and earnings than Penguin Solutions. Cirrus Logic is trading at a lower price-to-earnings ratio than Penguin Solutions, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and price targets for Cirrus Logic and Penguin Solutions, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cirrus Logic | 1 | 3 | 5 | 0 | 2.44 |
| Penguin Solutions | 1 | 1 | 6 | 1 | 2.78 |
Cirrus Logic presently has a consensus target price of $150.71, indicating a potential upside of 33.13%. Penguin Solutions has a consensus target price of $63.33, indicating a potential upside of 22.36%. Given Cirrus Logic’s higher possible upside, research analysts clearly believe Cirrus Logic is more favorable than Penguin Solutions.
Profitability
This table compares Cirrus Logic and Penguin Solutions’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cirrus Logic | 21.00% | 20.61% | 17.56% |
| Penguin Solutions | 6.44% | 28.23% | 6.58% |
Risk & Volatility
Cirrus Logic has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Penguin Solutions has a beta of 2.86, meaning that its share price is 186% more volatile than the S&P 500.
Summary
Cirrus Logic beats Penguin Solutions on 8 of the 15 factors compared between the two stocks.
About Cirrus Logic
Cirrus Logic, Inc., a fabless semiconductor company, develops low-power high-precision mixed-signal processing solutions in China, the United States, and internationally. The company offers audio products, including amplifiers; codecs components that integrate analog-to-digital converters (ADCs) and digital-to-analog converters (DACs) into a single integrated circuit (IC); smart codecs, a codec with integrated digital signal processing; standalone digital signal processors; and SoundClear technology, which consists of a portfolio of tools, software, and algorithms that helps to enhance user experience with features, such as louder, high-fidelity sound, audio playback, voice capture, and hearing augmentation for use in smartphones, tablets, laptops, AR/VR headsets, home theater systems, automotive entertainment systems, and professional audio systems. It also provides high-performance mixed-signal products comprising camera controllers, haptic and sensing solutions, and battery and power ICs for use in smartphones, as well as legacy industrial and energy applications, such as digital utility meters, power supplies, energy control, energy measurement, and energy exploration. The company markets and sells its products through direct sales force, external sales representatives, and distributors. Cirrus Logic, Inc. was incorporated in 1984 and is headquartered in Austin, Texas.
About Penguin Solutions
Penguin Solutions, Inc. engages in the designing and development of enterprise solutions worldwide. It operates through three segments: Advanced Computing, Integrated Memory, and Optimized LED. It offers dynamic random access memory modules, solid-state and flash storage, and other advanced integrated memory solutions for networking and telecom, data analytics, artificial intelligence and machine learning applications; and supply chain services, including procurement, logistics, inventory management, temporary warehousing, programming, kitting, and packaging services. The company also provides Penguin Computing that focus on technical computing for core and cloud environments through high-performance computing and AI solutions; and Penguin Edge, an edge computing solution for embedded and wireless applications, such as high-performance products for government, health care, manufacturing, and telecommunications applications. In addition, it offers Stratus, which provides simplified, protected, and autonomous fault tolerant computing solutions in the data center and at the Edge through hardware and software services; and solutions to education, energy, financial services, government, hyperscale, and manufacturing markets. Further, the company provides LED chip products comprising blue and green LED chips based on gallium nitride, and related materials under Cree LED brand; and surface mount devices under the Cree LED XLamp and J Series brands. It sells its products directly to original equipment manufacturers, enterprise, government and other end customers through direct sales force, e-commerce, customer service representatives, on-site field application engineers, independent sales representatives, distributors, integrators, and resellers. The company was formerly known as SMART Global Holdings, Inc. and changed its name to Penguin Solutions, Inc. in October 2024. Penguin Solutions, Inc. was founded in 1988 and is based in Grand Cayman, Cayman Islands.
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