Penguin Solutions (NASDAQ:PENG – Get Free Report) and Astera Labs (NASDAQ:ALAB – Get Free Report) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, valuation, institutional ownership, risk, earnings, dividends and profitability.
Valuation and Earnings
This table compares Penguin Solutions and Astera Labs”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Penguin Solutions | $1.37 billion | 2.40 | $25.39 million | $1.41 | 45.54 |
| Astera Labs | $852.53 million | 79.32 | $219.13 million | $2.02 | 192.97 |
Profitability
This table compares Penguin Solutions and Astera Labs’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Penguin Solutions | 6.44% | 28.23% | 6.58% |
| Astera Labs | 30.74% | 19.24% | 17.27% |
Analyst Ratings
This is a summary of current ratings and recommmendations for Penguin Solutions and Astera Labs, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Penguin Solutions | 1 | 2 | 6 | 0 | 2.56 |
| Astera Labs | 0 | 8 | 12 | 1 | 2.67 |
Penguin Solutions presently has a consensus price target of $64.17, indicating a potential downside of 0.07%. Astera Labs has a consensus price target of $348.33, indicating a potential downside of 10.64%. Given Penguin Solutions’ higher possible upside, equities research analysts plainly believe Penguin Solutions is more favorable than Astera Labs.
Institutional & Insider Ownership
60.5% of Astera Labs shares are held by institutional investors. 2.9% of Penguin Solutions shares are held by company insiders. Comparatively, 10.4% of Astera Labs shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Volatility and Risk
Penguin Solutions has a beta of 2.86, indicating that its stock price is 186% more volatile than the S&P 500. Comparatively, Astera Labs has a beta of 3.68, indicating that its stock price is 268% more volatile than the S&P 500.
Summary
Astera Labs beats Penguin Solutions on 12 of the 15 factors compared between the two stocks.
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.
About Astera Labs
Astera Labs, Inc. designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI infrastructure. Its Intelligent Connectivity Platform is comprised of a portfolio of data, network, and memory connectivity products, which are built on a unifying software-defined architecture that enables customers to deploy and operate high performance cloud and AI infrastructure at scale. The company was incorporated in 2017 and is based in Santa Clara, California.
Receive News & Ratings for Penguin Solutions Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Penguin Solutions and related companies with MarketBeat.com's FREE daily email newsletter.
