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

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

Profitability

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

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

Institutional & Insider Ownership

89.3% of MongoDB shares are held by institutional investors. 2.9% of Penguin Solutions shares are held by insiders. Comparatively, 3.1% of MongoDB shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Penguin Solutions	$1.35 billion	1.07	$25.39 million	$0.72	39.60
MongoDB	$2.46 billion	8.43	-$71.15 million	($0.88)	-293.51

Penguin Solutions has higher earnings, but lower revenue 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.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Penguin Solutions and MongoDB, as provided by MarketBeat.com.

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

Penguin Solutions presently has a consensus price target of $27.25, indicating a potential downside of 4.42%. MongoDB has a consensus price target of $361.97, indicating a potential upside of 40.14%. Given MongoDB’s higher possible upside, analysts clearly believe MongoDB is more favorable than Penguin Solutions.

Volatility & Risk

Penguin Solutions has a beta of 2.23, indicating that its share price is 123% more volatile than the S&P 500. Comparatively, MongoDB has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500.

Summary

Penguin Solutions beats MongoDB on 9 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 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.