Comparing Penguin Solutions (NASDAQ:PENG) & T1 Energy (NYSE:TE)

T1 Energy (NYSE:TE) and Penguin Solutions (NASDAQ:PENG) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.

Profitability

This table compares T1 Energy and Penguin Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
T1 Energy	-38.49%	-149.67%	-20.46%
Penguin Solutions	6.44%	28.23%	6.58%

Analyst Ratings

This is a breakdown of recent ratings and target prices for T1 Energy and Penguin Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
T1 Energy	1	4	5	1	2.55
Penguin Solutions	1	2	6	0	2.56

T1 Energy currently has a consensus price target of $8.30, suggesting a potential upside of 114.19%. Penguin Solutions has a consensus price target of $63.33, suggesting a potential upside of 15.80%. Given T1 Energy’s higher probable upside, analysts plainly believe T1 Energy is more favorable than Penguin Solutions.

Institutional & Insider Ownership

52.3% of T1 Energy shares are held by institutional investors. 22.4% of T1 Energy 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 large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

T1 Energy has a beta of 2.25, meaning that its share price is 125% 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.

Earnings & Valuation

This table compares T1 Energy and Penguin Solutions”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
T1 Energy	$755.29 million	1.51	-$367.83 million	($1.98)	-1.96
Penguin Solutions	$1.37 billion	2.05	$25.39 million	$1.41	38.79

Penguin Solutions has higher revenue and earnings than T1 Energy. T1 Energy 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 T1 Energy on 11 of the 15 factors compared between the two stocks.

About T1 Energy

T1 Energy Inc. is an energy solutions provider building an integrated supply chain for solar and batteries. T1 Energy Inc. , formerly known as FREYR Battery, is based in NEW YORK.

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.