Head-To-Head Review: Soitec (OTCMKTS:SLOIF) & Credo Technology Group (NASDAQ:CRDO)

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

Institutional & Insider 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, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Soitec and Credo Technology Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Soitec	1	0	0	0	1.00
Credo Technology Group	0	0	13	2	3.13

Credo Technology Group has a consensus price target of $126.27, suggesting a potential downside of 15.47%. Given Credo Technology Group’s stronger consensus rating and higher possible upside, analysts clearly believe Credo Technology Group is more favorable than Soitec.

Valuation & Earnings

This table compares Soitec 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
Soitec	$937.30 million	1.65	$98.66 million	N/A	N/A
Credo Technology Group	$436.77 million	59.17	$52.18 million	$0.67	222.96

Soitec has higher revenue and earnings than Credo Technology Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Soitec	N/A	N/A	N/A
Credo Technology Group	20.85%	19.02%	16.40%

Volatility & Risk

Soitec has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500. Comparatively, Credo Technology Group has a beta of 2.59, indicating that its stock price is 159% more volatile than the S&P 500.

Summary

Credo Technology Group beats Soitec on 11 of the 13 factors compared between the two stocks.

About Soitec

Soitec SA designs and manufactures semiconductor materials worldwide. Its products are used to manufacture chips that are used in smart phones, tablets, computers, IT servers, and data centers, as well as electronic components in cars, connected devices, and industrial and medical equipment. It provides CONNECT Radio Frequency Silicon-on-Insulator (RF-SOI) for smartphone front-end modules; CONNECT Piezoelectric-on-Insulator RF filters for smartphone; and CONNECT RF gallium nitride for 5g infrastructure base stations and smartphones, as well as CONNECT Fully Depleted Silicon-On-Insulator (FD-SOI). The company also offers Auto Power-SOI product for automotive and industrial markets; Auto Smartsic for green mobility; and AUTO POWER-allium nitride for power efficiency, as well as AUTO FD-SOI for automotive radar and processors. In addition, it provides Smart photonics-SOI products for optical networking; Smart Imager-SOI products for next generation 3D image sensing; Smart FD-SOI for ultra low power, energy efficient, and body biasing; smart partially depleted (PD) -SOI for high-performance computing markets. Soitec SA was incorporated in 1992 and is headquartered in Bernin, France.

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.