Head to Head Comparison: GSI Technology (NASDAQ:GSIT) & PENG (NASDAQ:PENG)

GSI Technology (NASDAQ:GSIT) and PENG (NASDAQ:PENG) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Risk and Volatility

GSI Technology has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, PENG has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500.

Earnings & Valuation

This table compares GSI Technology and PENG”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GSI Technology	$19.69 million	3.25	-$20.09 million	($0.60)	-4.18
PENG	$1.17 billion	0.75	-$52.47 million	($1.00)	-16.42

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

Institutional & Insider Ownership

33.2% of GSI Technology shares are owned by institutional investors. 34.1% of GSI Technology shares are owned by insiders. Comparatively, 2.4% of PENG shares are owned 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.

Profitability

This table compares GSI Technology and PENG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GSI Technology	-77.71%	-54.03%	-41.49%
PENG	-4.48%	8.05%	2.14%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for GSI Technology and PENG, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GSI Technology	0	0	0	0	0.00
PENG	0	0	4	0	3.00

PENG has a consensus target price of $23.75, indicating a potential upside of 44.64%. Given PENG’s stronger consensus rating and higher possible upside, analysts clearly believe PENG is more favorable than GSI Technology.

Summary

PENG beats GSI Technology on 8 of the 14 factors compared between the two stocks.

About GSI Technology

GSI Technology, Inc. designs, develops, and markets semiconductor memory solutions to networking, industrial, medical, aerospace, and military customers in the United States, China, Singapore, Germany, the Netherlands, and internationally. It offers associative processing unit products, which are focuses on applications using similarity search in visual search queries for ecommerce, computer vision, drug discovery, cyber security, and service markets. The company also provides static random access memory (SRAM) products, such as SyncBurst for microprocessor cache and other applications; No Bus Turnaround SRAMs to address the needs of networking and telecom applications; SigmaQuad and SigmaDDR products for density and random transaction rate requirements of networking and telecom applications; Low Latency DRAMs, a solution for advanced data networking applications; Asynchronous, a main memory for small cache-less embedded processors for industrial electronics, measurement systems and cost-sensitive networking equipment, and other applications; and specialty SRAMs. In addition, it offers radiation-hardened and radiation-tolerant SRAMs for military/defense and aerospace applications, such as networking satellites and missiles. The company's products are used as components in its original equipment manufacturer customers' products, including routers, switches, and other networking and telecommunications products; military and aerospace applications, such as radar and guidance systems and satellites; test and measurement applications consisting of high-speed testers; automotive applications comprising smart cruise control; medical applications, including ultrasound and CAT scan equipment; and audio/video processing. It markets its products through a network of independent sales representatives and distributors. GSI Technology, Inc. was incorporated in 1995 and is headquartered in Sunnyvale, California.

About PENG

SMART Global Holdings, Inc., a memory-focused company, engages in the designing and development of enterprise solutions in the United States, China, Europe, and internationally. It operates through Memory Solutions, Intelligent Platform Solutions, and LED Solutions segments. The company offers dynamic random access memory modules, solid-state and flash storage, and other advanced 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. It also provides Penguin Computing that focus on technical computing for core and cloud environments through HPC and AI solutions; and Penguin Edge, an edge computing solution for embedded and wireless applications including high-performance products for government, health care, industrial, and telecommunications applications. In addition, the company 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 leading-edge solutions to education, energy, financial services, government, hyperscale, and manufacturing markets. Further, it provides LED-based 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 brand. The company 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. SMART Global Holdings, Inc. was founded in 1988 and is headquartered in Milpitas, California.