DXC Technology Company. (DXC) vs Penguin Solutions, Inc. (PENG)

DXC Technology Company. and Penguin Solutions, Inc. are both Information Technology Services companies. Penguin Solutions, Inc. is the larger, with a market value of $3.1B against $2.4B — 1.3× the size. Penguin Solutions, Inc. trades at the lower P/E: 16.9× against 24.2×. Penguin Solutions, Inc. grew revenue faster over the last twelve months: 26.5% against −2.81%. Penguin Solutions, Inc. has the higher net margin (8.73% vs 0.91%) and the higher return on invested capital (15.2% vs 4.58%). Across the 21 metrics below, Penguin Solutions, Inc. leads on 14 and DXC Technology Company. on 7.

Valuation

Metric DXC PENG Information Technology Services median
P/E 24.19 16.91 18.04
P/S 0.19 1.46 1.18
P/B 0.70 4.70 1.82
Price to free cash flow 2.54 n/m 12.43
EV/EBITDA 2.44 12.20 10.07
EV/Sales 0.31 1.54 1.37
Earnings yield 4.13% 5.91% 3.46%
Free cash flow yield 39.36% (6.48%) 0.77%

Profitability

Metric DXC PENG Information Technology Services median
Gross margin 22.28% 27.66% 29.81%
Operating margin 2.83% 9.56% 1.81%
Net margin 0.91% 8.73% 0.91%
Free cash flow margin 7.46% (9.44%) 0.00%
Return on equity 0.00% 32.05% 0.00%
Return on assets 0.87% 6.87% 0.00%
Return on invested capital 4.58% 15.24% 0.00%

Growth

Metric DXC PENG Information Technology Services median
Revenue growth (TTM) (2.81%) 26.50% 4.96%
EPS growth (last fiscal year) (95.24%) 828.57% 3.57%
Revenue growth, 5-year CAGR (6.54%) 10.41% 7.15%
Net income growth, 5-year CAGR 0.00% 47.95% 0.00%

Health

Metric DXC PENG Information Technology Services median
Debt to equity 0.92 1.47 0.31
Current ratio 1.15 1.88 1.69
Net debt to EBITDA 1.09 0.65 0.42

Dividend

Metric DXC PENG Information Technology Services median
Dividend yield — — 1.80%
Payout ratio — — 0.30

Size

Metric DXC PENG Information Technology Services median
Market cap 2.39b 3.13b 1.06b

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