Credo Technology Group (NASDAQ:CRDO) versus Viavi Solutions (NASDAQ:VIAV) Financial Survey

Credo Technology Group (NASDAQ:CRDO) and Viavi Solutions (NASDAQ:VIAV) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Credo Technology Group and Viavi Solutions, 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
Viavi Solutions	1	4	4	0	2.33

Credo Technology Group presently has a consensus target price of $76.40, suggesting a potential upside of 14.41%. Viavi Solutions has a consensus target price of $12.33, suggesting a potential upside of 6.32%. Given Credo Technology Group’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Credo Technology Group is more favorable than Viavi Solutions.

Valuation and Earnings

This table compares Credo Technology Group and Viavi Solutions”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Credo Technology Group	$192.97 million	57.88	-$28.37 million	($0.15)	-445.20
Viavi Solutions	$1.00 billion	2.58	-$25.80 million	($0.18)	-64.44

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

Profitability

This table compares Credo Technology Group and Viavi Solutions’ 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%
Viavi Solutions	-3.87%	2.90%	1.16%

Volatility and Risk

Credo Technology Group has a beta of 2.09, suggesting that its stock price is 109% more volatile than the S&P 500. Comparatively, Viavi Solutions has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.

Insider & Institutional Ownership

80.5% of Credo Technology Group shares are held by institutional investors. Comparatively, 95.5% of Viavi Solutions shares are held by institutional investors. 16.0% of Credo Technology Group shares are held by insiders. Comparatively, 1.5% of Viavi Solutions 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.

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 Viavi Solutions

Viavi Solutions, Inc. engages in the provision of network test, monitoring, and assurance solutions for communications service providers, enterprises, network equipment manufacturers, government and avionics. It operates through the following segments: Network Enablement, Service Enablement, and Optical Security and Performance. The Network Enablement segment offers an integrated portfolio of testing solutions that access the network to perform build-out and maintenance tasks. The Service Enablement segment covers solutions and services primarily for communication service providers, and enterprises that deliver and/or operate broadband and IP networks (fixed and mobile) supporting voice, video, and data services as well as a wide range of applications. The Optical Security and Performance segment leverages its core optical coating technologies and volume manufacturing capability to design, manufacture, and sell products targeting anti-counterfeiting, consumer and industrial, government, healthcare, and other markets. The company was founded in 1979 and is headquartered in Chandler, AZ.