NXP Semiconductors (NASDAQ:NXPI – Get Free Report) and Credo Technology Group (NASDAQ:CRDO – Get Free Report) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, earnings and valuation.
Valuation & Earnings
This table compares NXP Semiconductors and Credo Technology Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NXP Semiconductors | $13.28 billion | 4.48 | $2.80 billion | $10.48 | 22.32 |
| Credo Technology Group | $192.97 million | 41.31 | -$28.37 million | ($0.16) | -300.00 |
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.
Volatility & Risk
Analyst Recommendations
This is a breakdown of current recommendations and price targets for NXP Semiconductors and Credo Technology Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NXP Semiconductors | 1 | 5 | 13 | 0 | 2.63 |
| Credo Technology Group | 1 | 0 | 7 | 1 | 2.89 |
NXP Semiconductors presently has a consensus price target of $275.60, indicating a potential upside of 17.83%. Credo Technology Group has a consensus price target of $36.56, indicating a potential downside of 23.84%. Given NXP Semiconductors’ higher possible upside, equities analysts clearly believe NXP Semiconductors is more favorable than Credo Technology Group.
Insider & 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 endowments, hedge funds and large money managers believe a company 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% |
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.
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