Reviewing Navitas Semiconductor (NASDAQ:NVTS) and Credo Technology Group (NASDAQ:CRDO)

Credo Technology Group (NASDAQ:CRDO) and Navitas Semiconductor (NASDAQ:NVTS) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Credo Technology Group and Navitas Semiconductor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Credo Technology Group	1	1	6	0	2.63
Navitas Semiconductor	0	4	4	0	2.50

Credo Technology Group presently has a consensus target price of $26.88, suggesting a potential downside of 7.99%. Navitas Semiconductor has a consensus target price of $7.41, suggesting a potential upside of 75.69%. Given Navitas Semiconductor’s higher probable upside, analysts clearly believe Navitas Semiconductor is more favorable than Credo Technology Group.

Volatility & Risk

Credo Technology Group has a beta of 2.2, suggesting that its share price is 120% more volatile than the S&P 500. Comparatively, Navitas Semiconductor has a beta of 2.44, suggesting that its share price is 144% more volatile than the S&P 500.

Institutional & Insider Ownership

80.5% of Credo Technology Group shares are held by institutional investors. Comparatively, 46.1% of Navitas Semiconductor shares are held by institutional investors. 23.9% of Credo Technology Group shares are held by insiders. Comparatively, 31.8% of Navitas Semiconductor shares are held by 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Credo Technology Group	-14.70%	-4.87%	-4.30%
Navitas Semiconductor	-97.75%	-21.22%	-17.32%

Earnings and Valuation

This table compares Credo Technology Group and Navitas Semiconductor’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	24.72	-$28.37 million	($0.18)	-162.28
Navitas Semiconductor	$89.27 million	8.66	-$145.43 million	($0.51)	-8.27

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

Summary

Credo Technology Group beats Navitas Semiconductor on 10 of the 14 factors compared between the two stocks.

About Credo Technology Group

Credo Technology Group Holding Ltd provides various high-speed connectivCredo Technology Group Holding Ltd provides various high-speed connectivity solutions for optical and electrical Ethernet applications in the United States, Mexico, 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. 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 headquartered in San Jose, California.ity solutions for optical and electrical Ethernet applications in the United States, Mexico, Mainland China, Hong Kong, and internationally. Its products include integrated circuits, active electrical cables, and SerDes chiplets that are based on its serializer/deserializer and digital signal processor technologies. The company also offers intellectual property solutions consist of SerDes IP licensing. The company was founded in 2008 and is headquartered in San Jose, California.

About Navitas Semiconductor

Navitas Semiconductor Corporation designs, develops, and markets gallium nitride power integrated circuits, silicon carbide, associated high-speed silicon system controllers, and digital isolators used in power conversion and charging. The company's products are used in mobile, consumer, data center, solar, electric vehicle, industrial motor drive, smart grid, and transportation applications. It operates in the United States, Europe, China, rest of Asia, and internationally. The company was founded in 2013 and is based in Torrance, California.