Head to Head Analysis: Credo Technology Group (NASDAQ:CRDO) versus SkyWater Technology (NASDAQ:SKYT)

SkyWater Technology (NASDAQ:SKYT) and Credo Technology Group (NASDAQ:CRDO) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Risk and Volatility

SkyWater Technology has a beta of 3.51, meaning that its share price is 251% more volatile than the S&P 500. Comparatively, Credo Technology Group has a beta of 2.63, meaning that its share price is 163% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SkyWater Technology	36.36%	-4.96%	-1.05%
Credo Technology Group	26.63%	25.28%	21.92%

Valuation & Earnings

This table compares SkyWater Technology and Credo Technology Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SkyWater Technology	$342.27 million	2.58	-$6.79 million	$2.58	7.05
Credo Technology Group	$436.77 million	59.90	$52.18 million	$1.14	127.04

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

Analyst Ratings

This is a breakdown of current ratings and target prices for SkyWater Technology and Credo Technology Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SkyWater Technology	1	1	5	0	2.57
Credo Technology Group	0	1	13	2	3.06

SkyWater Technology currently has a consensus price target of $21.50, suggesting a potential upside of 18.26%. Credo Technology Group has a consensus price target of $206.85, suggesting a potential upside of 42.82%. Given Credo Technology Group’s stronger consensus rating and higher possible upside, analysts plainly believe Credo Technology Group is more favorable than SkyWater Technology.

Insider and Institutional Ownership

70.0% of SkyWater Technology shares are held by institutional investors. Comparatively, 80.5% of Credo Technology Group shares are held by institutional investors. 37.9% of SkyWater Technology shares are held by company insiders. Comparatively, 11.8% of Credo Technology Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Credo Technology Group beats SkyWater Technology on 11 of the 15 factors compared between the two stocks.

About SkyWater Technology

SkyWater Technology, Inc., together with its subsidiaries, operates as a pure-play technology foundry that engages in the provision of semiconductor development, manufacturing, and packaging services in the United States. The company offers engineering and process development support services to co-create technologies with customers; and semiconductor manufacturing services for various silicon-based analog and mixed-signal, micro-electromechanical systems, and rad-hard integrated circuits. It serves customers operating in the computation, aerospace and defense, automotive, bio-health, consumer, and industrial sectors. The company was incorporated in 2016 and is headquartered in Bloomington, Minnesota.

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.