Kyndryl Holdings, Inc. (KD) vs Penguin Solutions, Inc. (PENG)

Kyndryl Holdings, Inc. and Penguin Solutions, Inc. are both Information Technology Services companies. Penguin Solutions, Inc. is the larger, with a market value of $3.2B against $2.9B — 1.1× the size. Penguin Solutions, Inc. trades at the lower P/E: 18.6× against 35.7×. Penguin Solutions, Inc. grew revenue faster over the last twelve months: 26.5% against −0.62%. Penguin Solutions, Inc. has the higher net margin (8.74% vs 0.58%) and the higher return on invested capital (15.2% vs 7.30%). Across the 21 metrics below, Penguin Solutions, Inc. leads on 14 and Kyndryl Holdings, Inc. on 7.

Valuation

Metric KD PENG Information Technology Services median
P/E 35.68 18.62 16.42
P/S 0.19 1.84 1.06
P/B 2.50 5.91 1.57
Price to free cash flow 12.88 n/m 11.62
EV/EBITDA 1.55 19.88 9.74
EV/Sales 0.33 1.92 1.23
Earnings yield 2.80% 5.37% 4.25%
Free cash flow yield 7.76% (5.15%) 4.50%

Profitability

Metric KD PENG Information Technology Services median
Gross margin 21.84% 27.66% 29.97%
Operating margin 2.44% 9.56% 3.30%
Net margin 0.58% 8.74% 2.09%
Free cash flow margin 1.51% (9.44%) 1.51%
Return on equity 6.93% 32.10% 3.67%
Return on assets 0.74% 6.88% 0.47%
Return on invested capital 7.30% 15.24% 0.57%

Growth

Metric KD PENG Information Technology Services median
Revenue growth (TTM) (0.62%) 26.50% 7.12%
EPS growth (last fiscal year) (19.05%) 1,027.96% 1.38%
Revenue growth, 5-year CAGR (4.15%) 10.41% 7.86%
Net income growth, 5-year CAGR 0.00% 47.95% 0.00%

Health

Metric KD PENG Information Technology Services median
Debt to equity 3.49 1.47 0.45
Current ratio 0.85 1.88 1.66
Net debt to EBITDA 0.44 0.65 0.45

Dividend

Metric KD PENG Information Technology Services median
Dividend yield — — 1.97%
Payout ratio — — 0.30

Size

Metric KD PENG Information Technology Services median
Market cap 2.87b 3.17b 1.11b

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