Critical Contrast: Credo Technology Group (NASDAQ:CRDO) vs. IQE (OTCMKTS:IQEPF)

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

Insider & Institutional Ownership

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Credo Technology Group	$1.34 billion	33.30	$472.28 million	$2.48	96.15
IQE	$150.84 million	3.88	-$48.79 million	N/A	N/A

Credo Technology Group has higher revenue and earnings than IQE.

Volatility & Risk

Credo Technology Group has a beta of 3.22, suggesting that its stock price is 222% more volatile than the S&P 500. Comparatively, IQE has a beta of 1.65, suggesting that its stock price is 65% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Credo Technology Group	35.37%	32.30%	28.88%
IQE	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Credo Technology Group and IQE, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Credo Technology Group	0	2	15	2	3.00
IQE	0	0	1	0	3.00

Credo Technology Group presently has a consensus price target of $263.11, indicating a potential upside of 10.34%. Given Credo Technology Group’s higher possible upside, analysts plainly believe Credo Technology Group is more favorable than IQE.

Summary

Credo Technology Group beats IQE on 12 of the 12 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 IQE

IQE plc, together with its subsidiaries, develops, manufactures, and sells advanced semiconductor materials. It operates through three segments: Wireless, Photonics, and CMOS++. The company manufactures and sells compound semiconductor materials for the wireless market which includes radio frequency devices for wireless communications, and photonics market, that includes applications that transmit and sense visible and infrared lights, as well as advanced semiconductor materials related to silicon. It operates in the United States, rest of the Americas, France, Germany, Israel, the United Kingdom, rest of Europe, the Middle East, Africa, the People's Republic of China, Japan, Taiwan, and rest of the Asia-Pacific. The company was founded in 1988 and is headquartered in Cardiff, the United Kingdom.