Analyzing Credo Technology Group (NASDAQ:CRDO) and NXP Semiconductors (NASDAQ:NXPI)

NXP Semiconductors (NASDAQ:NXPI) and Credo Technology Group (NASDAQ:CRDO) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, profitability, earnings, dividends, valuation, risk and analyst recommendations.

Earnings and Valuation

This table compares NXP Semiconductors and Credo Technology Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NXP Semiconductors	$13.28 billion	4.27	$2.80 billion	$10.48	21.27
Credo Technology Group	$192.97 million	39.47	-$28.37 million	($0.16)	-286.69

NXP Semiconductors has higher revenue and earnings than Credo Technology Group. Credo Technology Group is trading at a lower price-to-earnings ratio than NXP Semiconductors, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

90.5% of NXP Semiconductors shares are held by institutional investors. Comparatively, 80.5% of Credo Technology Group shares are held by institutional investors. 0.1% of NXP Semiconductors shares are held by company insiders. Comparatively, 16.0% of Credo Technology Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares NXP Semiconductors and Credo Technology Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NXP Semiconductors	20.98%	33.57%	13.21%
Credo Technology Group	-12.05%	-3.74%	-3.30%

Analyst Ratings

This is a summary of recent ratings and price targets for NXP Semiconductors and Credo Technology Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NXP Semiconductors	1	5	14	0	2.65
Credo Technology Group	1	0	7	1	2.89

NXP Semiconductors presently has a consensus target price of $276.76, suggesting a potential upside of 24.13%. Credo Technology Group has a consensus target price of $36.56, suggesting a potential downside of 20.31%. Given NXP Semiconductors’ higher possible upside, equities research analysts clearly believe NXP Semiconductors is more favorable than Credo Technology Group.

Risk & Volatility

NXP Semiconductors has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500. Comparatively, Credo Technology Group has a beta of 2.19, meaning that its share price is 119% more volatile than the S&P 500.

Summary

NXP Semiconductors beats Credo Technology Group on 10 of the 15 factors compared between the two stocks.

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.

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.