Penguin Solutions, Inc. (PENG) vs Parsons Corporation (PSN)

Penguin Solutions, Inc. and Parsons Corporation are both Information Technology Services companies. Parsons Corporation is the larger, with a market value of $4.6B against $3.7B — 1.3× the size. Penguin Solutions, Inc. trades at the lower P/E: 24.9× against 30.7×. Penguin Solutions, Inc. grew revenue faster over the last twelve months: 26.5% against −5.84%. Penguin Solutions, Inc. has the higher net margin (8.74% vs 2.50%) and the higher return on invested capital (15.2% vs 4.90%). Across the 21 metrics below, Penguin Solutions, Inc. leads on 14 and Parsons Corporation on 7.

Valuation

Metric PENG PSN Information Technology Services median
P/E 24.87 30.67 15.42
P/S 2.45 0.77 1.08
P/B 7.90 1.76 1.76
Price to free cash flow n/m 15.61 10.62
EV/EBITDA 26.28 13.46 8.98
EV/Sales 2.53 0.96 1.23
Earnings yield 4.02% 3.26% 4.17%
Free cash flow yield (3.85%) 6.41% 4.44%

Profitability

Metric PENG PSN Information Technology Services median
Gross margin 27.66% 21.96% 31.05%
Operating margin 9.56% 4.93% 3.30%
Net margin 8.74% 2.50% 2.09%
Free cash flow margin (9.44%) 4.91% 0.00%
Return on equity 32.10% 5.86% 3.67%
Return on assets 6.88% 2.66% 0.47%
Return on invested capital 15.24% 4.90% 0.57%

Growth

Metric PENG PSN Information Technology Services median
Revenue growth (TTM) 26.50% (5.84%) 7.12%
EPS growth (last fiscal year) 1,027.96% 3.77% 3.37%
Revenue growth, 5-year CAGR 10.41% 10.18% 7.86%
Net income growth, 5-year CAGR 47.95% 19.60% 0.00%

Health

Metric PENG PSN Information Technology Services median
Debt to equity 1.47 0.54 0.45
Current ratio 1.88 1.66 1.66
Net debt to EBITDA 0.65 1.43 0.45

Dividend

Metric PENG PSN Information Technology Services median
Dividend yield — — 2.13%
Payout ratio — — 0.30

Size

Metric PENG PSN Information Technology Services median
Market cap 3.67b 4.59b 1.16b

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