Credo Technology Group (NASDAQ:CRDO – Get Free Report) and NXP Semiconductors (NASDAQ:NXPI – Get Free Report) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.
Institutional & Insider Ownership
80.5% of Credo Technology Group shares are held by institutional investors. Comparatively, 90.5% of NXP Semiconductors shares are held by institutional investors. 16.0% of Credo Technology Group shares are held by insiders. Comparatively, 0.1% of NXP Semiconductors shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Credo Technology Group and NXP Semiconductors”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Credo Technology Group | $192.97 million | 38.52 | -$28.37 million | ($0.16) | -279.75 |
| NXP Semiconductors | $13.28 billion | 4.60 | $2.80 billion | $10.48 | 22.85 |
Volatility and Risk
Credo Technology Group has a beta of 2.19, suggesting that its stock price is 119% more volatile than the S&P 500. Comparatively, NXP Semiconductors has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500.
Profitability
This table compares Credo Technology Group and NXP Semiconductors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Credo Technology Group | -12.05% | -3.74% | -3.30% |
| NXP Semiconductors | 20.98% | 34.11% | 13.22% |
Analyst Recommendations
This is a summary of recent recommendations and price targets for Credo Technology Group and NXP Semiconductors, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Credo Technology Group | 1 | 0 | 7 | 1 | 2.89 |
| NXP Semiconductors | 1 | 5 | 13 | 0 | 2.63 |
Credo Technology Group currently has a consensus price target of $36.56, indicating a potential downside of 18.33%. NXP Semiconductors has a consensus price target of $276.85, indicating a potential upside of 15.59%. Given NXP Semiconductors’ higher possible upside, analysts clearly believe NXP Semiconductors is more favorable than Credo Technology Group.
Summary
NXP Semiconductors beats Credo Technology Group on 10 of the 15 factors compared between the two stocks.
About Credo Technology Group
Credo Technology Group Holding Ltd provides various high-speed connectivity Credo Technology Group Holding Ltd provides various high-speed connectivity solutions for optical and electrical Ethernet applications in the United States, Taiwan, Mainland China, Hong Kong, and internationally. Its products include HiWire active electrical cables, optical digital signal processors, low-power line card PHY, serializer/deserializer (SerDes) chiplets, and SerDes IP, as well as integrated circuits, active electrical cables. The company also offers intellectual property solutions consist of SerDes IP licensing. It sells its products to hyperscalers, original equipment manufacturers, original design manufacturers and optical module manufacturers, as well as into the enterprise and HPC markets. The company was founded in 2008 and is based in Grand Cayman, Cayman Islands.
About NXP Semiconductors
NXP Semiconductors N.V. offers various semiconductor products. The company's product portfolio includes microcontrollers; application processors, including i.MX application processors, and i.MX 8 and 9 family of applications processors; communication processors; wireless connectivity solutions, such as near field communications, ultra-wideband, Bluetooth low-energy, Zigbee, and Wi-Fi and Wi-Fi/Bluetooth integrated SoCs; analog and interface devices; radio frequency power amplifiers; and security controllers, as well as semiconductor-based environmental and inertial sensors, including pressure, inertial, magnetic, and gyroscopic sensors. Its products are used in various applications, including automotive, industrial and Internet of Things, mobile, and communication infrastructure. The company markets its products to various original equipment manufacturers, contract manufacturers, and distributors. It operates in China, the Netherlands, the United States, Singapore, Germany, Japan, South Korea, Taiwan, and internationally. N.V. was incorporated in 2006 and is headquartered in Eindhoven, the Netherlands.
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