Penguin Solutions (NASDAQ:PENG – Get Free Report) and Atomera (NASDAQ:ATOM – Get Free Report) are both technology companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, institutional ownership, valuation and profitability.
Institutional and Insider Ownership
30.8% of Atomera shares are owned by institutional investors. 2.9% of Penguin Solutions shares are owned by insiders. Comparatively, 8.1% of Atomera shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Penguin Solutions and Atomera”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Penguin Solutions | $1.73 billion | 1.67 | $180.62 million | $2.59 | 21.83 |
| Atomera | $60,000.00 | 1,990.02 | -$20.17 million | ($0.65) | -4.71 |
Penguin Solutions has higher revenue and earnings than Atomera. Atomera is trading at a lower price-to-earnings ratio than Penguin Solutions, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations for Penguin Solutions and Atomera, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Penguin Solutions | 1 | 1 | 7 | 1 | 2.80 |
| Atomera | 1 | 0 | 0 | 0 | 1.00 |
Penguin Solutions presently has a consensus target price of $87.50, indicating a potential upside of 54.76%. Given Penguin Solutions’ stronger consensus rating and higher possible upside, equities analysts clearly believe Penguin Solutions is more favorable than Atomera.
Profitability
This table compares Penguin Solutions and Atomera’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Penguin Solutions | 10.43% | 36.71% | 7.95% |
| Atomera | -9,742.17% | -77.91% | -70.64% |
Volatility and Risk
Penguin Solutions has a beta of 2.86, meaning that its stock price is 186% more volatile than the S&P 500. Comparatively, Atomera has a beta of 2.03, meaning that its stock price is 103% more volatile than the S&P 500.
Summary
Penguin Solutions beats Atomera on 12 of the 15 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 Atomera
Atomera Incorporated engages in the developing, commercializing, and licensing proprietary processes and technologies for the semiconductor industry in North America and the Asia Pacific. The company's lead technology is the Mears Silicon Technology, a thin film of reengineered silicon that can be applied as a transistor channel enhancement to CMOS-type transistors. Its customers include foundries, integrated device manufacturers, fabless semiconductor manufacturers, original equipment manufacturers, and electronic design automation companies. The company was formerly known as Mears Technologies, Inc. and changed its name to Atomera Incorporated in January 2016. Atomera Incorporated was founded in 2001 and is headquartered in Los Gatos, California.
Receive News & Ratings for Penguin Solutions Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Penguin Solutions and related companies with MarketBeat.com's FREE daily email newsletter.
