Critical Analysis: PENG (PENG) and Its Peers

PENG (NASDAQ:PENG) is one of 173 publicly-traded companies in the “Semiconductors & related devices” industry, but how does it compare to its rivals? We will compare PENG to similar companies based on the strength of its earnings, institutional ownership, risk, dividends, profitability, analyst recommendations and valuation.

Valuation and Earnings

This table compares PENG and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
PENG	$1.17 billion	-$52.47 million	-18.08
PENG Competitors	$7.98 billion	$786.23 million	16.14

PENG’s rivals have higher revenue and earnings than PENG. PENG is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for PENG and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PENG	0	0	5	1	3.17
PENG Competitors	2411	9820	19315	684	2.57

PENG currently has a consensus price target of $23.60, suggesting a potential upside of 30.53%. As a group, “Semiconductors & related devices” companies have a potential upside of 530.45%. Given PENG’s rivals higher possible upside, analysts clearly believe PENG has less favorable growth aspects than its rivals.

Volatility and Risk

PENG has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500. Comparatively, PENG’s rivals have a beta of 1.72, suggesting that their average stock price is 72% more volatile than the S&P 500.

Profitability

This table compares PENG and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PENG	-4.48%	8.05%	2.14%
PENG Competitors	-387.75%	-69.61%	-10.09%

Insider & Institutional Ownership

57.3% of shares of all “Semiconductors & related devices” companies are owned by institutional investors. 2.4% of PENG shares are owned by insiders. Comparatively, 10.3% of shares of all “Semiconductors & related devices” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

PENG rivals beat PENG on 7 of the 13 factors compared.

PENG Company Profile

SMART Global Holdings, Inc., a memory-focused company, engages in the designing and development of enterprise solutions in the United States, China, Europe, and internationally. It operates through Memory Solutions, Intelligent Platform Solutions, and LED Solutions segments. The company offers dynamic random access memory modules, solid-state and flash storage, and other advanced 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. It also provides Penguin Computing that focus on technical computing for core and cloud environments through HPC and AI solutions; and Penguin Edge, an edge computing solution for embedded and wireless applications including high-performance products for government, health care, industrial, and telecommunications applications. In addition, the company 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 leading-edge solutions to education, energy, financial services, government, hyperscale, and manufacturing markets. Further, it provides LED-based 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 brand. The company 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. SMART Global Holdings, Inc. was founded in 1988 and is headquartered in Milpitas, California.