Cirrus Logic (NASDAQ:CRUS) & Penguin Solutions (NASDAQ:PENG) Financial Review

Penguin Solutions (NASDAQ:PENG) and Cirrus Logic (NASDAQ:CRUS) are both mid-cap technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, risk, dividends, institutional ownership and profitability.

Institutional and Insider Ownership

88.0% of Cirrus Logic shares are owned by institutional investors. 2.9% of Penguin Solutions shares are owned by insiders. Comparatively, 1.2% of Cirrus Logic shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for Penguin Solutions and Cirrus Logic, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Penguin Solutions	1	1	6	1	2.78
Cirrus Logic	1	3	5	0	2.44

Penguin Solutions presently has a consensus price target of $63.33, suggesting a potential upside of 22.36%. Cirrus Logic has a consensus price target of $150.71, suggesting a potential upside of 33.13%. Given Cirrus Logic’s higher possible upside, analysts plainly believe Cirrus Logic is more favorable than Penguin Solutions.

Earnings and Valuation

This table compares Penguin Solutions and Cirrus Logic”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Penguin Solutions	$1.37 billion	1.94	$25.39 million	$1.41	36.71
Cirrus Logic	$2.00 billion	2.84	$414.41 million	$8.17	13.86

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.

Risk & Volatility

Penguin Solutions has a beta of 2.86, suggesting that its share price is 186% more volatile than the S&P 500. Comparatively, Cirrus Logic has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500.

Profitability

This table compares Penguin Solutions and Cirrus Logic’s 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%
Cirrus Logic	21.00%	20.61%	17.56%

Summary

Cirrus Logic beats Penguin Solutions on 8 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 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.