Credo Technology Group (NASDAQ:CRDO – Get Free Report) and Ultra Clean (NASDAQ:UCTT – Get Free Report) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.
Profitability
This table compares Credo Technology Group and Ultra Clean’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Credo Technology Group | -9.70% | -2.94% | -2.60% |
| Ultra Clean | 0.18% | 4.08% | 1.94% |
Valuation & Earnings
This table compares Credo Technology Group and Ultra Clean”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Credo Technology Group | $245.59 million | 49.04 | -$28.37 million | ($0.15) | -480.13 |
| Ultra Clean | $1.98 billion | 0.84 | -$31.10 million | $0.08 | 463.50 |
Institutional & Insider Ownership
80.5% of Credo Technology Group shares are held by institutional investors. Comparatively, 96.1% of Ultra Clean shares are held by institutional investors. 16.0% of Credo Technology Group shares are held by insiders. Comparatively, 2.2% of Ultra Clean shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Credo Technology Group and Ultra Clean, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Credo Technology Group | 0 | 1 | 9 | 0 | 2.90 |
| Ultra Clean | 0 | 0 | 4 | 0 | 3.00 |
Credo Technology Group presently has a consensus price target of $68.60, indicating a potential downside of 4.75%. Ultra Clean has a consensus price target of $57.75, indicating a potential upside of 55.74%. Given Ultra Clean’s stronger consensus rating and higher probable upside, analysts plainly believe Ultra Clean is more favorable than Credo Technology Group.
Risk & Volatility
Credo Technology Group has a beta of 2.26, suggesting that its share price is 126% more volatile than the S&P 500. Comparatively, Ultra Clean has a beta of 2.09, suggesting that its share price is 109% more volatile than the S&P 500.
Summary
Ultra Clean beats Credo Technology Group on 9 of the 14 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 Ultra Clean
Ultra Clean Holdings, Inc. develops and supplies critical subsystems, components and parts, and ultra-high purity cleaning and analytical services for the semiconductor industry in the United States and internationally. The company provides ultra-clean valves, high purity connectors, industrial process connectors and valves, pneumatic actuators, manifolds and safety solutions, hoses, pressure gauges, and gas line and component heaters; chemical delivery modules that deliver gases and reactive chemicals in a liquid or gaseous form from a centralized subsystem to the reaction chamber; and gas delivery systems, such as weldments, filters, mass flow controllers, regulators, pressure transducers and valves, component heaters, and an integrated electronic and/or pneumatic control system. It also offers various industrial and automation production equipment; fluid delivery systems consist of one or more chemical delivery units, including PFA tubing, filters, flow controllers, regulators, component heaters, and an integrated electronic and/or pneumatic control system; precision robotic systems; top-plate assemblies; frame assemblies; process modules, a subsystem of semiconductor manufacturing tools that process integrated circuits onto wafers; and other high-level assemblies. In addition, the company provides tool chamber parts cleaning and coating services; micro-contamination analysis services for tool parts, wafers and depositions, chemicals, cleanroom materials, deionized water, and airborne molecular contamination; and analytical verification services for process tool chamber part cleaning. It primarily serves original equipment manufacturing customers in the semiconductor capital equipment and semiconductor integrated device manufacturing industries, as well as display, consumer, medical, energy, industrial, and research equipment industries. The company was founded in 1991 and is headquartered in Hayward, California.
Receive News & Ratings for Credo Technology Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Credo Technology Group and related companies with MarketBeat.com's FREE daily email newsletter.
