Analyzing Credo Technology Group (NASDAQ:CRDO) and United Microelectronics (NYSE:UMC)

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

Earnings & Valuation

This table compares United Microelectronics and Credo Technology Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Microelectronics	$223.46 billion	0.09	$1.95 billion	$0.70	11.04
Credo Technology Group	$217.59 million	28.32	-$28.37 million	($0.18)	-207.28

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
United Microelectronics	23.90%	14.80%	9.41%
Credo Technology Group	-12.05%	-3.74%	-3.30%

Analyst Ratings

This is a breakdown of current ratings and price targets for United Microelectronics and Credo Technology Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Microelectronics	0	2	1	0	2.33
Credo Technology Group	1	0	7	1	2.89

United Microelectronics currently has a consensus target price of $7.40, indicating a potential downside of 4.21%. Credo Technology Group has a consensus target price of $35.44, indicating a potential downside of 5.00%. Given United Microelectronics’ higher probable upside, equities analysts clearly believe United Microelectronics is more favorable than Credo Technology Group.

Insider & Institutional Ownership

5.1% of United Microelectronics shares are owned by institutional investors. Comparatively, 80.5% of Credo Technology Group shares are owned by institutional investors. 8.0% of United Microelectronics shares are owned by insiders. Comparatively, 23.9% of Credo Technology Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

United Microelectronics has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, Credo Technology Group has a beta of 2.24, meaning that its stock price is 124% more volatile than the S&P 500.

Summary

United Microelectronics beats Credo Technology Group on 8 of the 15 factors compared between the two stocks.

About United Microelectronics

United Microelectronics Corporation operates as a semiconductor wafer foundry in Taiwan, China, Hong Kong, Japan, Korea, the United States, Europe, and internationally. The company provides circuit design, mask tooling, wafer fabrication, and assembly and testing services. It serves fabless design companies and integrated device manufacturers. United Microelectronics Corporation was incorporated in 1980 and is headquartered in Hsinchu City, Taiwan.

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.