Comparing MongoDB (NASDAQ:MDB) & Penguin Solutions (NASDAQ:PENG)

MongoDB (NASDAQ:MDB) and Penguin Solutions (NASDAQ:PENG) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and recommmendations for MongoDB and Penguin Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MongoDB	3	7	26	0	2.64
Penguin Solutions	0	3	6	1	2.80

MongoDB presently has a consensus target price of $361.97, suggesting a potential upside of 42.74%. Penguin Solutions has a consensus target price of $27.25, suggesting a potential downside of 11.21%. Given MongoDB’s higher probable upside, analysts clearly believe MongoDB is more favorable than Penguin Solutions.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MongoDB	-2.89%	-1.03%	-0.84%
Penguin Solutions	4.07%	19.94%	5.33%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MongoDB	$2.46 billion	8.27	-$71.15 million	($0.88)	-288.17
Penguin Solutions	$1.37 billion	1.14	$25.39 million	$0.72	42.63

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

Institutional & Insider Ownership

89.3% of MongoDB shares are held by institutional investors. 3.1% of MongoDB shares are held by insiders. Comparatively, 2.9% of Penguin Solutions shares are held by 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.

Risk & Volatility

MongoDB has a beta of 1.6, meaning that its share price is 60% 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.

Summary

Penguin Solutions beats MongoDB on 9 of the 15 factors compared between the two stocks.

About MongoDB

MongoDB, Inc., together with its subsidiaries, provides general purpose database platform worldwide. The company provides MongoDB Atlas, a hosted multi-cloud database-as-a-service solution; MongoDB Enterprise Advanced, a commercial database server for enterprise customers to run in the cloud, on-premises, or in a hybrid environment; and Community Server, a free-to-download version of its database, which includes the functionality that developers need to get started with MongoDB. It offers professional services comprising consulting and training. The company was formerly known as 10gen, Inc. and changed its name to MongoDB, Inc. in August 2013. MongoDB, Inc. was incorporated in 2007 and is headquartered in New York, New York.

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.