Reviewing Penguin Solutions (NASDAQ:PENG) & Impinj (NASDAQ:PI)

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Impinj and Penguin Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Impinj	1	3	7	0	2.55
Penguin Solutions	1	1	7	1	2.80

Impinj currently has a consensus target price of $196.10, indicating a potential upside of 12.23%. Penguin Solutions has a consensus target price of $87.50, indicating a potential upside of 91.47%. Given Penguin Solutions’ stronger consensus rating and higher probable upside, analysts clearly believe Penguin Solutions is more favorable than Impinj.

Profitability

This table compares Impinj and Penguin Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Impinj	-2.45%	6.65%	2.95%
Penguin Solutions	10.43%	36.71%	7.95%

Volatility and Risk

Impinj has a beta of 1.9, meaning that its stock price is 90% more volatile than the S&P 500. Comparatively, Penguin Solutions has a beta of 2.87, meaning that its stock price is 187% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Impinj	$361.08 million	14.93	-$10.85 million	($0.33)	-529.48
Penguin Solutions	$1.73 billion	1.59	$180.62 million	$2.59	17.64

Penguin Solutions has higher revenue and earnings than Impinj. Impinj is trading at a lower price-to-earnings ratio than Penguin Solutions, indicating that it is currently the more affordable of the two stocks.

Summary

Penguin Solutions beats Impinj on 11 of the 12 factors compared between the two stocks.

About Impinj

Impinj, Inc. operates a cloud connectivity platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Its platform wirelessly connects items and delivers data about the connected items to business and consumer applications. The company’s platform comprises endpoint ICs, a miniature radios-on-a-chip that attaches to a host item and includes a number to identify the item. Its platform also consists of systems products that consists of reader ICs, readers, and gateways to wirelessly provide power to and communicate bidirectionally with endpoint ICs on host items, as well as to read, write, authenticate, and engage the endpoint ICs on those items; and software and algorithms that enable its partners to solve enterprise business problems, such as retail self-checkout and loss prevention. The company primarily serves retail, supply chain and logistics, automotive, aviation, banking, datacenters, food, healthcare, industrial and manufacturing, linen and uniform tracking, sports, and travel industries through original equipment and device manufacturers, tag service bureaus, systems integrators, value-added resellers, independent software vendors, and other solution partners. Impinj, Inc. was incorporated in 2000 and is headquartered in Seattle, Washington.

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.