PENG vs MTSI

For growth investors, MACOM Technology Solutions Holdings, Inc.

(MTSI) is the stronger pick with 32. 6% revenue growth year-over-year, versus 16. 9% for Penguin Solutions, Inc. (PENG). Penguin Solutions, Inc. (PENG) offers the better valuation at 139. 2x trailing P/E (17. 8x forward), making it the more compelling value choice. Analysts rate Penguin Solutions, Inc. (PENG) a "Buy" — based on 8 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On forward P/E, Penguin Solutions, Inc.

is actually cheaper at 17. 8x.

Over the past 5 years, MACOM Technology Solutions Holdings, Inc.

(MTSI) delivered a total return of +513. 6%, compared to +102. 0% for Penguin Solutions, Inc. (PENG). Over 10 years, the gap is even starker: MTSI returned +795. 9% versus PENG's +102. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), MACOM Technology Solutions Holdings, Inc.

(MTSI) is the lower-risk stock at 1. 75β versus Penguin Solutions, Inc. 's 2. 28β — meaning PENG is approximately 30% more volatile than MTSI relative to the S&P 500. On balance sheet safety, MACOM Technology Solutions Holdings, Inc. (MTSI) carries a lower debt/equity ratio of 41% versus 121% for Penguin Solutions, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), MACOM Technology Solutions Holdings, Inc.

(MTSI) is pulling ahead at 32. 6% versus 16. 9% for Penguin Solutions, Inc. (PENG). On earnings-per-share growth, the picture is similar: Penguin Solutions, Inc. grew EPS 128. 0% year-over-year, compared to -170. 2% for MACOM Technology Solutions Holdings, Inc.. Over a 3-year CAGR, MTSI leads at 12. 7% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Penguin Solutions, Inc.

(PENG) is the more profitable company, earning 1. 6% net margin versus -5. 6% for MACOM Technology Solutions Holdings, Inc. — meaning it keeps 1. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MTSI leads at 13. 4% versus 5. 4% for PENG. At the gross margin level — before operating expenses — MTSI leads at 54. 9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Penguin Solutions, Inc.

(PENG) trades at 17. 8x forward P/E versus 76. 9x for MACOM Technology Solutions Holdings, Inc. — 59. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MTSI: -26. 3% to $254. 00.

In this comparison, PENG (0.

4% yield) pays a dividend. MTSI does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, MACOM Technology Solutions Holdings, Inc.

(MTSI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+795. 9% 10Y return). Penguin Solutions, Inc. (PENG) carries a higher beta of 2. 28 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (MTSI: +795. 9%, PENG: +102. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.