Teradyne (NASDAQ:TER) & Credo Technology Group (NASDAQ:CRDO) Financial Contrast

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

Institutional and Insider Ownership

80.5% of Credo Technology Group shares are owned by institutional investors. Comparatively, 99.8% of Teradyne shares are owned by institutional investors. 9.1% of Credo Technology Group shares are owned by insiders. Comparatively, 0.2% of Teradyne shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Credo Technology Group	33.83%	28.77%	25.93%
Teradyne	25.77%	39.93%	27.67%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Credo Technology Group	$1.59 billion	25.58	$472.28 million	$2.81	77.06
Teradyne	$3.19 billion	19.73	$554.05 million	$7.29	55.24

Teradyne has higher revenue and earnings than Credo Technology Group. Teradyne 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 Recommendations

This is a breakdown of recent ratings for Credo Technology Group and Teradyne, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Credo Technology Group	0	3	14	1	2.89
Teradyne	0	5	11	0	2.69

Credo Technology Group currently has a consensus target price of $262.67, indicating a potential upside of 21.30%. Teradyne has a consensus target price of $396.80, indicating a potential downside of 1.46%. Given Credo Technology Group’s stronger consensus rating and higher probable upside, analysts plainly believe Credo Technology Group is more favorable than Teradyne.

Risk & Volatility

Credo Technology Group has a beta of 3.25, suggesting that its share price is 225% more volatile than the S&P 500. Comparatively, Teradyne has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500.

Summary

Credo Technology Group beats Teradyne on 9 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 Teradyne

Teradyne, Inc. designs, develops, manufactures, and sells automated test systems and robotics products worldwide. It operates through four segments; Semiconductor Test, System Test, Robotics, and Wireless Test. The Semiconductor Test segment offers products and services for wafer level and device package testing of semiconductor devices in automotive, industrial, communications, consumer, smartphones, cloud, computer and electronic game, and other applications. This segment also provides FLEX test platform systems; J750 test system to address the volume semiconductor devices, including microcontrollers; Magnum platform that tests memory devices, such as flash memory and DRAM; and ETS platform for semiconductor manufacturers, and assembly and test subcontractors in the analog/mixed signal markets. It serves integrated device manufacturers that integrate the fabrication of silicon wafers into their business; fabless companies that outsource the manufacturing of silicon wafers; foundries; and semiconductor assembly and test providers. The System Test segment offers defense/aerospace test instrumentation and systems; storage and system level test systems; and circuit-board test and inspection systems. The Wireless Test segment provides wireless test solutions for silicon validation, wireless module manufacturing, and wireless end device manufacturing under the LitePoint brand. This segment also offers IQxel-MX and IQxel-MW7G series products for edge measurement performance in the manufacturing of connectivity products; IQxstream-5G and IQgig-5G family products to support 4G and 5G technologies; and IQgig-UWB+ for certification and manufacturing test support for ultra wideband products. The Robotics segment provides collaborative robotic arms, autonomous mobile robots, and advanced robotic control software for manufacturing, logistics, and industrial customers. The company was incorporated in 1960 and is headquartered in North Reading, Massachusetts.