Cellebrite DI (NASDAQ:CLBT) & Penguin Solutions (NASDAQ:PENG) Critical Review

Cellebrite DI (NASDAQ:CLBT) and Penguin Solutions (NASDAQ:PENG) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Volatility & Risk

Cellebrite DI has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500. Comparatively, Penguin Solutions has a beta of 2.23, meaning that its share price is 123% more volatile than the S&P 500.

Insider and Institutional Ownership

45.9% of Cellebrite DI shares are held by institutional investors. 5.7% of Cellebrite DI shares are held by company insiders. Comparatively, 2.9% of Penguin Solutions shares are held by company 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 & Earnings

This table compares Cellebrite DI and Penguin Solutions”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cellebrite DI	$401.20 million	10.65	-$283.01 million	$0.31	57.55
Penguin Solutions	$1.37 billion	0.78	$25.39 million	$0.29	69.93

Penguin Solutions has higher revenue and earnings than Cellebrite DI. Cellebrite DI is trading at a lower price-to-earnings ratio than Penguin Solutions, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Cellebrite DI and Penguin Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cellebrite DI	16.74%	20.81%	10.71%
Penguin Solutions	1.82%	14.45%	4.29%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Cellebrite DI and Penguin Solutions, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cellebrite DI	1	0	4	0	2.60
Penguin Solutions	0	3	7	0	2.70

Cellebrite DI currently has a consensus price target of $24.00, indicating a potential upside of 34.53%. Penguin Solutions has a consensus price target of $28.00, indicating a potential upside of 38.07%. Given Penguin Solutions’ stronger consensus rating and higher possible upside, analysts clearly believe Penguin Solutions is more favorable than Cellebrite DI.

About Cellebrite DI

Cellebrite DI Ltd. develops solutions for legally sanctioned investigations in Europe, the Middle East, Africa, the Americas, and the Asia-Pacific. The company's DI suite of solutions allows users to collect, review, analyze, and manage digital data across the investigative lifecycle with respect to legally sanctioned investigations used in various cases, including child exploitation, homicide, anti-terror, border control, sexual crimes, human trafficking, corporate security, cryptocurrency, and intellectual property theft. It provides Inseyets, a digital forensics software that collects and reviews digital evidence from various digital sources when conducting legally sanctioned investigations. The company's digital forensics software also offers data extraction, decoding capabilities, workflows, and automation capabilities. In addition, it provides Cellebrite Pathfinder, which reduces the time spent manually reviewing digital evidence by automating data analysis and visualization; Smart Search, an open source intelligence tool that automates the collection and review of publicly available online data; and Guardian, a case and evidence management solution. Further, the company offers digital forensic software for enterprises and service providers, including Inseyets for Enterprise, Endpoint Inspector, and Mobile Now; and professional services, such as training and certification services, and other services. It serves federal and state and local agencies. The company was incorporated in 1999 and is headquartered in Petah Tikva, Israel.

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.