Penguin Solutions, Inc. (PENG)vsSynopsys Inc (SNPS)
PENG
Penguin Solutions, Inc.
$44.23
+13.47%
TECHNOLOGY · Cap: $2.05B
SNPS
Synopsys Inc
$516.48
+2.23%
TECHNOLOGY · Cap: $98.94B
Smart Verdict
WallStSmart Research — data-driven comparison
Synopsys Inc generates 494% more annual revenue ($8.01B vs $1.35B). SNPS leads profitability with a 13.8% profit margin vs 4.1%. PENG trades at a lower P/E of 55.7x. SNPS earns a higher WallStSmart Score of 47/100 (D+).
PENG
Hold45
out of 100
Grade: D
SNPS
Hold47
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+84.6%
Fair Value
$123.01
Current Price
$44.23
$78.78 discount
Intrinsic value data unavailable for SNPS.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 544.0% YoY
Revenue surging 65.5% year-over-year
Large-cap with strong market position
Areas to Watch
4.1% margin — thin
Premium valuation, high expectations priced in
Revenue declined 6.2%
ROE of 5.5% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : PENG
The strongest argument for PENG centers on EPS Growth.
Bull Case : SNPS
The strongest argument for SNPS centers on Revenue Growth, Market Cap. Revenue growth of 65.5% demonstrates continued momentum.
Bear Case : PENG
The primary concerns for PENG are Profit Margin, P/E Ratio, Revenue Growth. A P/E of 55.7x leaves little room for execution misses. Thin 4.1% margins leave little buffer for downturns.
Bear Case : SNPS
The primary concerns for SNPS are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 79.2x leaves little room for execution misses.
Key Dynamics to Monitor
PENG profiles as a value stock while SNPS is a growth play — different risk/reward profiles.
PENG carries more volatility with a beta of 2.65 — expect wider price swings.
SNPS is growing revenue faster at 65.5% — sustainability is the question.
SNPS generates stronger free cash flow (822M), providing more financial flexibility.
Bottom Line
SNPS scores higher overall (47/100 vs 45/100) and 65.5% revenue growth. PENG offers better value entry with a 84.6% margin of safety. Both earn "Hold" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Penguin Solutions, Inc.
TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA
Penguin Solutions, Inc., a memory-focused company, engages in the designing and development of enterprise solutions in the United States, China, Europe, and internationally. The company is headquartered in Grand Cayman, Cayman Islands.
Synopsys Inc
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Synopsys is an American electronic design automation company that focuses on silicon design and verification, silicon intellectual property and software security and quality. Products include logic synthesis, behavioral synthesis, place and route, static timing analysis, formal verification, hardware description language (SystemC, SystemVerilog/Verilog, VHDL) simulators, and transistor-level circuit simulation.
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