WallStSmart

Penguin Solutions, Inc. (PENG)vsSonos Inc (SONO)

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Smart Verdict

WallStSmart Research — data-driven comparison

Penguin Solutions, Inc. generates 16% more annual revenue ($1.73B vs $1.49B). PENG leads profitability with a 10.4% profit margin vs 3.8%. PENG trades at a lower P/E of 22.6x. PENG earns a higher WallStSmart Score of 68/100 (B-).

PENG

Strong Buy

68

out of 100

Grade: B-

Growth: 8.7Profit: 6.0Value: 5.3Quality: 5.0
Piotroski: 2/9Altman Z: 1.59

SONO

Hold

47

out of 100

Grade: D+

Growth: 6.0Profit: 4.5Value: 3.7Quality: 7.0
Piotroski: 3/9Altman Z: 2.04
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for PENG.

SONOSignificantly Overvalued (-32.2%)

Margin of Safety

-32.2%

Fair Value

$12.48

Current Price

$16.33

$3.85 premium

UndervaluedFair: $12.48Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PENG2 strengths · Avg: 10.0/10
Revenue GrowthGrowth
67.7%10/10

Revenue surging 67.7% year-over-year

EPS GrowthGrowth
1188.0%10/10

Earnings expanding 1188.0% YoY

SONO2 strengths · Avg: 9.5/10
EPS GrowthGrowth
87.5%10/10

Earnings expanding 87.5% YoY

Debt/EquityHealth
0.129/10

Conservative balance sheet, low leverage

Areas to Watch

PENG4 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.594/10

Distress zone — elevated risk

Debt/EquityHealth
1.173/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Free Cash FlowQuality
$-170.79M2/10

Negative free cash flow — burning cash

SONO4 concerns · Avg: 3.3/10
P/E RatioValuation
38.8x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
6.2%3/10

ROE of 6.2% — below average capital efficiency

Profit MarginProfitability
3.8%3/10

3.8% margin — thin

Operating MarginProfitability
4.4%3/10

Operating margin of 4.4%

Comparative Analysis Report

WallStSmart Research

Bull Case : PENG

The strongest argument for PENG centers on Revenue Growth, EPS Growth. Revenue growth of 67.7% demonstrates continued momentum.

Bull Case : SONO

The strongest argument for SONO centers on EPS Growth, Debt/Equity.

Bear Case : PENG

The primary concerns for PENG are Altman Z-Score, Debt/Equity, Piotroski F-Score.

Bear Case : SONO

The primary concerns for SONO are P/E Ratio, Return on Equity, Profit Margin. Thin 3.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

PENG profiles as a growth stock while SONO is a value play — different risk/reward profiles.

PENG carries more volatility with a beta of 2.86 — expect wider price swings.

PENG is growing revenue faster at 67.7% — sustainability is the question.

SONO generates stronger free cash flow (40M), providing more financial flexibility.

Bottom Line

PENG scores higher overall (68/100 vs 47/100) and 67.7% revenue growth. Both earn "Strong Buy" 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.

Sonos Inc

TECHNOLOGY · CONSUMER ELECTRONICS · USA

Sonos, Inc. designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is headquartered in Santa Barbara, California.

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