Head-To-Head Survey: Penguin Solutions (NASDAQ:PENG) vs. Micron Technology (NASDAQ:MU)

Penguin Solutions (NASDAQ:PENG) and Micron Technology (NASDAQ:MU) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.

Institutional & Insider Ownership

80.8% of Micron Technology shares are owned by institutional investors. 2.9% of Penguin Solutions shares are owned by company insiders. Comparatively, 0.2% of Micron Technology shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Penguin Solutions and Micron Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Penguin Solutions	10.43%	36.71%	7.95%
Micron Technology	63.80%	92.62%	66.29%

Risk & Volatility

Penguin Solutions has a beta of 2.86, suggesting that its stock price is 186% more volatile than the S&P 500. Comparatively, Micron Technology has a beta of 2.22, suggesting that its stock price is 122% more volatile than the S&P 500.

Earnings and Valuation

This table compares Penguin Solutions and Micron Technology”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	$1.73 billion	1.81	$180.62 million	$2.59	20.05
Micron Technology	$133.19 billion	7.52	$84.97 billion	$74.21	11.92

Micron Technology has higher revenue and earnings than Penguin Solutions. Micron Technology 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 Ratings

This is a summary of recent recommendations and price targets for Penguin Solutions and Micron Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Penguin Solutions	1	1	7	1	2.80
Micron Technology	0	4	41	1	2.93

Penguin Solutions presently has a consensus target price of $87.50, suggesting a potential upside of 68.50%. Micron Technology has a consensus target price of $1,407.88, suggesting a potential upside of 59.13%. Given Penguin Solutions’ higher possible upside, research analysts clearly believe Penguin Solutions is more favorable than Micron Technology.

Summary

Micron Technology beats Penguin Solutions on 10 of the 14 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 Micron Technology

Micron Technology, Inc. designs, develops, manufactures, and sells memory and storage products worldwide. The company operates through four segments: Compute and Networking Business Unit, Mobile Business Unit, Embedded Business Unit, and Storage Business Unit. It provides memory and storage technologies comprising dynamic random access memory semiconductor devices with low latency that provide high-speed data retrieval; non-volatile and re-writeable semiconductor storage devices; and non-volatile re-writable semiconductor memory devices that provide fast read speeds under the Micron and Crucial brands, as well as through private labels. The company offers memory products for the cloud server, enterprise, client, graphics, networking, industrial, and automotive markets, as well as for smartphone and other mobile-device markets; SSDs and component-level solutions for the enterprise and cloud, client, and consumer storage markets; discrete storage products in component and wafers; and memory and storage products for the automotive, industrial, and consumer markets. It markets its products through its direct sales force, independent sales representatives, distributors, and retailers; and web-based customer direct sales channel, as well as through channel and distribution partners. Micron Technology, Inc. was founded in 1978 and is headquartered in Boise, Idaho.