Head-To-Head Survey: Qnity Electronics (NYSE:Q) & Credo Technology Group (NASDAQ:CRDO)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Qnity Electronics	10.16%	12.63%	6.68%
Credo Technology Group	33.83%	28.77%	25.93%

Analyst Recommendations

This is a breakdown of recent recommendations for Qnity Electronics and Credo Technology Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Qnity Electronics	0	1	9	1	3.00
Credo Technology Group	0	3	14	1	2.89

Qnity Electronics currently has a consensus target price of $164.78, indicating a potential upside of 41.10%. Credo Technology Group has a consensus target price of $262.67, indicating a potential upside of 117.96%. Given Credo Technology Group’s higher probable upside, analysts clearly believe Credo Technology Group is more favorable than Qnity Electronics.

Earnings and Valuation

This table compares Qnity Electronics and Credo Technology Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Qnity Electronics	$4.75 billion	5.13	$692.00 million	$2.66	43.90
Credo Technology Group	$1.34 billion	16.96	$472.28 million	$2.81	42.89

Qnity Electronics has higher revenue and earnings than Credo Technology Group. Credo Technology Group is trading at a lower price-to-earnings ratio than Qnity Electronics, 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. 0.2% of Qnity Electronics shares are owned by company insiders. Comparatively, 9.1% of Credo Technology Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Credo Technology Group beats Qnity Electronics on 9 of the 13 factors compared between the two stocks.

About Qnity Electronics

Qnity Electronics Inc. is a premier technology solution provider across the semiconductor value chain. Qnity Electronics Inc. is based in WILMINGTON, Del.

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.