Analyzing Penguin Solutions (NASDAQ:PENG) and WiSA Technologies (NASDAQ:WISA)

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

Institutional and Insider Ownership

0.7% of WiSA Technologies shares are held by institutional investors. 5.3% of WiSA Technologies shares are held by company insiders. Comparatively, 2.4% of Penguin Solutions shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

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

Volatility & Risk

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

Analyst Ratings

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

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

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

Earnings & Valuation

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

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

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

Summary

Penguin Solutions beats WiSA Technologies on 8 of the 13 factors compared between the two stocks.

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.

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.