Analyzing Credo Technology Group (NASDAQ:CRDO) & Viavi Solutions (NASDAQ:VIAV)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Viavi Solutions	-3.87%	2.90%	1.16%
Credo Technology Group	-9.70%	-2.94%	-2.60%

Institutional and Insider Ownership

95.5% of Viavi Solutions shares are owned by institutional investors. Comparatively, 80.5% of Credo Technology Group shares are owned by institutional investors. 1.5% of Viavi Solutions shares are owned by insiders. Comparatively, 16.0% of Credo Technology Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Viavi Solutions and Credo Technology Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Viavi Solutions	1	4	4	0	2.33
Credo Technology Group	0	1	9	0	2.90

Viavi Solutions presently has a consensus price target of $12.33, indicating a potential upside of 9.14%. Credo Technology Group has a consensus price target of $76.40, indicating a potential upside of 24.73%. Given Credo Technology Group’s stronger consensus rating and higher possible upside, analysts clearly believe Credo Technology Group is more favorable than Viavi Solutions.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Viavi Solutions	$1.01 billion	2.49	-$25.80 million	($0.18)	-62.78
Credo Technology Group	$245.59 million	41.71	-$28.37 million	($0.15)	-408.33

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.

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.

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.