Synaptics (NASDAQ:SYNA) vs. Credo Technology Group (NASDAQ:CRDO) Head to Head Review

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

Risk and Volatility

Synaptics has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500. Comparatively, Credo Technology Group has a beta of 2.72, indicating that its share price is 172% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Synaptics	-5.41%	4.77%	2.58%
Credo Technology Group	31.81%	29.63%	26.20%

Institutional and Insider Ownership

99.4% of Synaptics shares are held by institutional investors. Comparatively, 80.5% of Credo Technology Group shares are held by institutional investors. 0.5% of Synaptics shares are held by insiders. Comparatively, 11.8% of Credo Technology Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Synaptics and Credo Technology Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Synaptics	$1.07 billion	2.70	-$47.80 million	($1.59)	-47.15
Credo Technology Group	$1.07 billion	17.69	$52.18 million	$1.80	56.92

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

Analyst Recommendations

This is a summary of current recommendations for Synaptics and Credo Technology Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Synaptics	1	3	10	0	2.64
Credo Technology Group	0	2	13	2	3.00

Synaptics presently has a consensus price target of $99.91, indicating a potential upside of 33.27%. Credo Technology Group has a consensus price target of $206.33, indicating a potential upside of 101.38%. Given Credo Technology Group’s stronger consensus rating and higher possible upside, analysts clearly believe Credo Technology Group is more favorable than Synaptics.

Summary

Credo Technology Group beats Synaptics on 13 of the 15 factors compared between the two stocks.

About Synaptics

Synaptics Incorporated develops, markets, and sells semiconductor products worldwide. The company offers AudioSmart for voice and audio processing; ConnectSmart for high-speed video/audio/data connectivity; DisplayLink for transmitting compressed video frames across low bandwidth connections; VideoSmart that enables set-top boxes, over-the-top, streaming devices, soundbars, surveillance cameras, and smart displays; and ImagingSmart solutions. It also provides Natural ID, a fingerprint ID product that is used in notebook personal computers (PCs), PC peripherals, automobiles, and other applications; TouchPad, a touch-sensitive pad that senses the position and movement of one or more fingers on its surface; SecurePad that integrates fingerprint sensor directly into the TouchPad area; ClickPad that offers a clickable mechanical design; and ForcePad. In addition, the company offers ClearPad, which enables users to interact directly with the display on mobile smartphones, tablets, and automobiles; ClearView products that provide advanced image processing and low power technology for displays on smartphones and tablets; and TouchView products, a touch controller and display driver integration product. Further, it provides TouchPad with a pointing stick in a single notebook computer enabling users to select their interface of choice; TouchStyk, a self-contained pointing stick module; ultra-low power edge artificial intelligence platform for battery powered wireless devices; wireless connectivity solutions comprising Wi-Fi, Bluetooth, global positioning system, global navigation satellite system, and ULE; and voice over IP and digital enhanced cordless telecommunications solutions. The company sells its products through direct sales, outside sales representatives, distributors, and resellers to mobile and PC OEMs; IoT OEMs; and automotive and consumer electronics manufacturers. The company was incorporated in 1986 and is headquartered in San Jose, California.

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.