Head-To-Head Contrast: Broadcom (NASDAQ:AVGO) and Credo Technology Group (NASDAQ:CRDO)

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

Analyst Ratings

This is a breakdown of current ratings for Credo Technology Group and Broadcom, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Credo Technology Group	0	1	13	2	3.06
Broadcom	0	1	29	3	3.06

Credo Technology Group presently has a consensus price target of $206.85, suggesting a potential upside of 37.95%. Broadcom has a consensus price target of $436.33, suggesting a potential upside of 27.65%. Given Credo Technology Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe Credo Technology Group is more favorable than Broadcom.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Credo Technology Group	26.63%	25.28%	21.92%
Broadcom	36.20%	37.45%	16.51%

Risk and Volatility

Credo Technology Group has a beta of 2.63, meaning that its share price is 163% more volatile than the S&P 500. Comparatively, Broadcom has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500.

Valuation and Earnings

This table compares Credo Technology Group and Broadcom”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	$436.77 million	62.01	$52.18 million	$1.14	131.53
Broadcom	$63.89 billion	25.37	$23.13 billion	$4.76	71.81

Broadcom has higher revenue and earnings than Credo Technology Group. Broadcom 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.

Insider & Institutional Ownership

80.5% of Credo Technology Group shares are owned by institutional investors. Comparatively, 76.4% of Broadcom shares are owned by institutional investors. 11.8% of Credo Technology Group shares are owned by insiders. Comparatively, 2.0% of Broadcom shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Credo Technology Group beats Broadcom on 8 of the 15 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 Broadcom

Broadcom Inc. designs, develops, and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates in two segments, Semiconductor Solutions and Infrastructure Software. It provides set-top box system-on-chips (SoCs); cable, digital subscriber line, and passive optical networking central office/consumer premise equipment SoCs; wireless local area network access point SoCs; Ethernet switching and routing custom silicon solutions; serializer/deserializer application specific integrated circuits; optical and copper, and physical layer devices; and fiber optic components and RF semiconductor devices. The company also offers RF front end modules and filter; Wi-Fi, Bluetooth, and global positioning system/global navigation satellite system SoCs; custom touch controllers; inductive charging; attached small computer system interface, and redundant array of independent disks controllers and adapters; peripheral component interconnect express; fiber channel host bus adapters; read channel based SoCs; custom flash controllers; preamplifiers; optocouplers, industrial fiber optics, and motion control encoders and subsystems; light emitting diode, ethernet PHYs, switch ICs, and camera microcontrollers. Its products are used in various applications, including enterprise and data center networking, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Broadcom Inc. was founded in 1961 and is headquartered in Palo Alto, California.