Head-To-Head Comparison: Axcelis Technologies (NASDAQ:ACLS) and Credo Technology Group (NASDAQ:CRDO)

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

Risk and Volatility

Axcelis Technologies has a beta of 1.88, meaning that its share price is 88% more volatile than the S&P 500. Comparatively, Credo Technology Group has a beta of 3.29, meaning that its share price is 229% more volatile than the S&P 500.

Earnings & Valuation

This table compares Axcelis Technologies 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
Axcelis Technologies	$839.05 million	3.65	$120.24 million	$3.36	29.54
Credo Technology Group	$1.34 billion	16.96	$472.28 million	$2.81	42.89

Credo Technology Group has higher revenue and earnings than Axcelis Technologies. Axcelis Technologies 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

90.0% of Axcelis Technologies shares are held by institutional investors. Comparatively, 80.5% of Credo Technology Group shares are held by institutional investors. 0.5% of Axcelis Technologies shares are held by insiders. Comparatively, 9.1% of Credo Technology Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Axcelis Technologies and Credo Technology Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Axcelis Technologies	1	2	2	0	2.20
Credo Technology Group	0	3	14	1	2.89

Axcelis Technologies currently has a consensus target price of $145.33, suggesting a potential upside of 46.45%. Credo Technology Group has a consensus target price of $262.67, suggesting a potential upside of 117.96%. Given Credo Technology Group’s stronger consensus rating and higher possible upside, analysts plainly believe Credo Technology Group is more favorable than Axcelis Technologies.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Axcelis Technologies	11.74%	11.51%	8.75%
Credo Technology Group	33.83%	28.77%	25.93%

Summary

Credo Technology Group beats Axcelis Technologies on 13 of the 15 factors compared between the two stocks.

About Axcelis Technologies

Axcelis Technologies, Inc. designs, manufactures, and services ion implantation and other processing equipment used in the fabrication of semiconductor chips in the United States, Europe, and Asia Pacific. The company offers high energy, high current, and medium current implanters for various application requirements. It also provides aftermarket lifecycle products and services, including used tools, spare parts, equipment upgrades, maintenance services, and customer training. It sells its equipment and services to semiconductor chip manufacturers through its direct sales force. The company was founded in 1978 and is headquartered in Beverly, Massachusetts.

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.