Credo Technology Group (NASDAQ:CRDO) vs. IQE (OTCMKTS:IQEPF) Critical Contrast
by Tristan Rich · The Markets DailyIQE (OTCMKTS:IQEPF – Get Free Report) and Credo Technology Group (NASDAQ:CRDO – Get Free Report) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.
Volatility and Risk
IQE has a beta of 1.68, indicating that its share price is 68% more volatile than the S&P 500. Comparatively, Credo Technology Group has a beta of 3.2, indicating that its share price is 220% more volatile than the S&P 500.
Earnings and Valuation
This table compares IQE 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 | |
| IQE | $150.84 million | 3.38 | -$48.79 million | N/A | N/A |
| Credo Technology Group | $1.34 billion | 33.79 | $472.28 million | $2.48 | 97.54 |
Credo Technology Group has higher revenue and earnings than IQE.
Institutional & Insider Ownership
80.5% of Credo Technology Group shares are held by institutional investors. 11.8% 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.
Analyst Recommendations
This is a breakdown of current ratings and price targets for IQE and Credo Technology Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| IQE | 0 | 0 | 1 | 0 | 3.00 |
| Credo Technology Group | 0 | 2 | 15 | 2 | 3.00 |
Credo Technology Group has a consensus price target of $263.11, suggesting a potential upside of 8.76%. Given Credo Technology Group’s higher probable upside, analysts plainly believe Credo Technology Group is more favorable than IQE.
Profitability
This table compares IQE and Credo Technology Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| IQE | N/A | N/A | N/A |
| Credo Technology Group | 35.37% | 32.30% | 28.88% |
Summary
Credo Technology Group beats IQE on 12 of the 12 factors compared between the two stocks.
About IQE
IQE plc, together with its subsidiaries, develops, manufactures, and sells advanced semiconductor materials. It operates through three segments: Wireless, Photonics, and CMOS++. The company manufactures and sells compound semiconductor materials for the wireless market which includes radio frequency devices for wireless communications, and photonics market, that includes applications that transmit and sense visible and infrared lights, as well as advanced semiconductor materials related to silicon. It operates in the United States, rest of the Americas, France, Germany, Israel, the United Kingdom, rest of Europe, the Middle East, Africa, the People's Republic of China, Japan, Taiwan, and rest of the Asia-Pacific. The company was founded in 1988 and is headquartered in Cardiff, the United Kingdom.
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.