Intel (NASDAQ:INTC – Get Free Report) and Penguin Solutions (NASDAQ:PENG – Get Free Report) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, earnings and profitability.
Earnings and Valuation
This table compares Intel and Penguin Solutions”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Intel | $54.23 billion | 1.62 | $1.69 billion | ($3.72) | -5.47 |
| Penguin Solutions | $1.17 billion | 0.90 | -$52.47 million | ($1.00) | -19.87 |
Intel has higher revenue and earnings than Penguin Solutions. Penguin Solutions is trading at a lower price-to-earnings ratio than Intel, indicating that it is currently the more affordable of the two stocks.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Intel | -29.42% | -1.71% | -0.97% |
| Penguin Solutions | -4.48% | 8.05% | 2.14% |
Institutional & Insider Ownership
64.5% of Intel shares are owned by institutional investors. 0.0% of Intel shares are owned by company insiders. Comparatively, 2.4% of Penguin Solutions shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
Intel has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, Penguin Solutions has a beta of 1.74, meaning that its share price is 74% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings for Intel and Penguin Solutions, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Intel | 5 | 25 | 1 | 0 | 1.87 |
| Penguin Solutions | 0 | 0 | 5 | 1 | 3.17 |
Intel presently has a consensus target price of $30.04, suggesting a potential upside of 47.68%. Penguin Solutions has a consensus target price of $23.60, suggesting a potential upside of 18.77%. Given Intel’s higher probable upside, research analysts plainly believe Intel is more favorable than Penguin Solutions.
Summary
Penguin Solutions beats Intel on 9 of the 15 factors compared between the two stocks.
About Intel
Intel Corporation designs, develops, manufactures, markets, and sells computing and related products and services worldwide. It operates through Client Computing Group, Data Center and AI, Network and Edge, Mobileye, and Intel Foundry Services segments. The company's products portfolio comprises central processing units and chipsets, system-on-chips (SoCs), and multichip packages; mobile and desktop processors; hardware products comprising graphics processing units (GPUs), domain-specific accelerators, and field programmable gate arrays (FPGAs); and memory and storage, connectivity and networking, and other semiconductor products. It also offers silicon devices and software products; and optimization solutions for workloads, such as AI, cryptography, security, storage, networking, and leverages various features supporting diverse compute environments. In addition, the company develops and deploys advanced driver assistance systems (ADAS), and autonomous driving technologies and solutions; and provides advanced process technologies backed by an ecosystem of IP, EDA, and design services, as well as systems of chips, including advanced packaging technologies, software and accelerate bring-up, and integration of chips and driving standards. Further, it delivers and deploys intelligent edge platforms that allow developers to achieve agility and drive automation using AI for efficient operations with data integrity, as well as provides hardware and software platforms, tools, and ecosystem partnerships for digital transformation from the cloud to edge. The company serves original equipment manufacturers, original design manufacturers, cloud service providers, and other manufacturers and service providers. It has a strategic agreement with Synopsys, Inc. to develop EDA and IP solutions; and ARM that enables chip designers to build optimized compute SoCs on the Intel 18A process. Intel Corporation was incorporated in 1968 and is headquartered in Santa Clara, California.
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.
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