Head to Head Analysis: IQE (OTCMKTS:IQEPF) vs. Credo Technology Group (NASDAQ:CRDO)

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

Volatility and Risk

IQE has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500. Comparatively, Credo Technology Group has a beta of 3.22, indicating that its share price is 222% more volatile than the S&P 500.

Earnings and Valuation

This table compares IQE and Credo Technology Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IQE	$150.84 million	3.96	-$48.79 million	N/A	N/A
Credo Technology Group	$1.34 billion	38.10	$472.28 million	$2.48	109.98

Credo Technology Group has higher revenue and earnings than IQE.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
IQE	N/A	N/A	N/A
Credo Technology Group	35.37%	32.30%	28.88%

Analyst Recommendations

This is a summary of recent recommendations for IQE and Credo Technology Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IQE	0	0	1	0	3.00
Credo Technology Group	0	2	15	2	3.00

Credo Technology Group has a consensus price target of $263.11, indicating a potential downside of 3.53%. Given Credo Technology Group’s higher possible upside, analysts plainly believe Credo Technology Group is more favorable than IQE.

Insider and Institutional Ownership

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

Summary

Credo Technology Group beats IQE on 12 of the 12 factors compared between the two stocks.

About IQE

IQE plc, together with its subsidiaries, develops, manufactures, and sells advanced semiconductor materials. It operates through three segments: Wireless, Photonics, and CMOS++. The company manufactures and sells compound semiconductor materials for the wireless market which includes radio frequency devices for wireless communications, and photonics market, that includes applications that transmit and sense visible and infrared lights, as well as advanced semiconductor materials related to silicon. It operates in the United States, rest of the Americas, France, Germany, Israel, the United Kingdom, rest of Europe, the Middle East, Africa, the People's Republic of China, Japan, Taiwan, and rest of the Asia-Pacific. The company was founded in 1988 and is headquartered in Cardiff, the United Kingdom.

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.