Penguin Solutions (NASDAQ:PENG) and WiSA Technologies (NASDAQ:WISA) Financial Review

Penguin Solutions (NASDAQ:PENG) and WiSA Technologies (NASDAQ:WISA) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.

Risk & Volatility

Penguin Solutions has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500. Comparatively, WiSA Technologies has a beta of -0.4, suggesting that its stock price is 140% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Penguin Solutions	-4.48%	8.05%	2.14%
WiSA Technologies	-2,345.48%	-1,953.50%	-186.28%

Institutional and Insider Ownership

0.7% of WiSA Technologies shares are held by institutional investors. 2.4% of Penguin Solutions shares are held by company insiders. Comparatively, 5.3% of WiSA Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Penguin Solutions and WiSA Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Penguin Solutions	0	0	5	1	3.17
WiSA Technologies	0	0	1	0	3.00

Penguin Solutions currently has a consensus price target of $23.60, indicating a potential upside of 17.65%. WiSA Technologies has a consensus price target of $11.00, indicating a potential upside of 562.65%. Given WiSA Technologies’ higher probable upside, analysts clearly believe WiSA Technologies is more favorable than Penguin Solutions.

Earnings & Valuation

This table compares Penguin Solutions and WiSA Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Penguin Solutions	$1.17 billion	0.91	-$52.47 million	($1.00)	-20.06
WiSA Technologies	$2.08 million	6.63	-$18.72 million	N/A	N/A

WiSA Technologies has lower revenue, but higher earnings than Penguin Solutions.

Summary

Penguin Solutions beats WiSA Technologies on 8 of the 13 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 WiSA Technologies

WiSA Technologies, Inc. develops, manufactures, and sells audio wireless technology for smart devices and next-generation home entertainment systems in the United States and Europe. The company offers wireless modules. It serves primarily to consumer electronics companies. The company was formerly known as Summit Wireless Technologies, Inc. and changed its name to WiSA Technologies Inc. in March 2022. WiSA Technologies, Inc. was incorporated in 2010 and is headquartered in Beaverton, Oregon.