Critical Review: Credo Technology Group (NASDAQ:CRDO) & Ichor (NASDAQ:ICHR)

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Credo Technology Group	$436.77 million	61.00	$52.18 million	$1.14	129.38
Ichor	$849.04 million	0.78	-$20.82 million	($1.20)	-15.97

Credo Technology Group has higher earnings, but lower revenue than Ichor. Ichor 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 Ratings

This is a summary of recent ratings and recommmendations for Credo Technology Group and Ichor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Credo Technology Group	0	1	13	2	3.06
Ichor	1	4	3	0	2.25

Credo Technology Group presently has a consensus price target of $206.85, indicating a potential upside of 40.24%. Ichor has a consensus price target of $23.20, indicating a potential upside of 21.09%. Given Credo Technology Group’s stronger consensus rating and higher possible upside, research analysts clearly believe Credo Technology Group is more favorable than Ichor.

Risk & Volatility

Credo Technology Group has a beta of 2.63, meaning that its stock price is 163% more volatile than the S&P 500. Comparatively, Ichor has a beta of 1.82, meaning that its stock price is 82% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Credo Technology Group	26.63%	25.28%	21.92%
Ichor	-4.26%	-0.96%	-0.67%

Institutional and Insider Ownership

80.5% of Credo Technology Group shares are owned by institutional investors. Comparatively, 94.8% of Ichor shares are owned by institutional investors. 11.8% of Credo Technology Group shares are owned by insiders. Comparatively, 1.9% of Ichor shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Credo Technology Group beats Ichor on 13 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 Ichor

Ichor Holdings, Ltd. engages in the design, engineering, and manufacture of fluid delivery subsystems and components for semiconductor capital equipment in the United States and internationally. It primarily offers gas and chemical delivery systems and subsystems that are used in the manufacturing of semiconductor devices. The company's gas delivery subsystems deliver, monitor, and control gases used in semiconductor manufacturing processes, such as etch and deposition; and chemical delivery subsystems blend and dispense the reactive liquid chemistries used in semiconductor manufacturing processes comprising chemical-mechanical planarization, electroplating, and cleaning. In addition, it manufactures precision machined components, weldments, electron beam, laser-welded components, precision vacuum and hydrogen brazing, surface treatment technologies, and other proprietary products. The company primarily markets its products to equipment OEMs in the semiconductor equipment market in Japan. Ichor Holdings, Ltd. was incorporated in 1999 and is headquartered in Fremont, California.