Credo Technology Group (NASDAQ:CRDO – Get Free Report) and Ultra Clean (NASDAQ:UCTT – Get Free Report) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.
Valuation & Earnings
This table compares Credo Technology Group and Ultra Clean”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Credo Technology Group | $245.59 million | 48.50 | -$28.37 million | ($0.15) | -474.80 |
| Ultra Clean | $1.98 billion | 0.83 | -$31.10 million | $0.08 | 456.13 |
Credo Technology Group has higher earnings, but lower revenue than Ultra Clean. Credo Technology Group is trading at a lower price-to-earnings ratio than Ultra Clean, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Credo Technology Group | 0 | 1 | 9 | 0 | 2.90 |
| Ultra Clean | 0 | 0 | 4 | 0 | 3.00 |
Credo Technology Group currently has a consensus price target of $68.60, indicating a potential downside of 3.68%. Ultra Clean has a consensus price target of $57.75, indicating a potential upside of 58.26%. Given Ultra Clean’s stronger consensus rating and higher possible upside, analysts clearly believe Ultra Clean is more favorable than Credo Technology Group.
Risk and Volatility
Credo Technology Group has a beta of 2.26, meaning that its stock price is 126% more volatile than the S&P 500. Comparatively, Ultra Clean has a beta of 2.09, meaning that its stock price is 109% more volatile than the S&P 500.
Profitability
This table compares Credo Technology Group and Ultra Clean’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Credo Technology Group | -9.70% | -2.94% | -2.60% |
| Ultra Clean | 0.18% | 4.08% | 1.94% |
Insider & Institutional Ownership
80.5% of Credo Technology Group shares are owned by institutional investors. Comparatively, 96.1% of Ultra Clean shares are owned by institutional investors. 16.0% of Credo Technology Group shares are owned by company insiders. Comparatively, 2.2% of Ultra Clean shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Ultra Clean beats Credo Technology Group on 9 of the 14 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 Ultra Clean
Ultra Clean Holdings, Inc. develops and supplies critical subsystems, components and parts, and ultra-high purity cleaning and analytical services for the semiconductor industry in the United States and internationally. The company provides ultra-clean valves, high purity connectors, industrial process connectors and valves, pneumatic actuators, manifolds and safety solutions, hoses, pressure gauges, and gas line and component heaters; chemical delivery modules that deliver gases and reactive chemicals in a liquid or gaseous form from a centralized subsystem to the reaction chamber; and gas delivery systems, such as weldments, filters, mass flow controllers, regulators, pressure transducers and valves, component heaters, and an integrated electronic and/or pneumatic control system. It also offers various industrial and automation production equipment; fluid delivery systems consist of one or more chemical delivery units, including PFA tubing, filters, flow controllers, regulators, component heaters, and an integrated electronic and/or pneumatic control system; precision robotic systems; top-plate assemblies; frame assemblies; process modules, a subsystem of semiconductor manufacturing tools that process integrated circuits onto wafers; and other high-level assemblies. In addition, the company provides tool chamber parts cleaning and coating services; micro-contamination analysis services for tool parts, wafers and depositions, chemicals, cleanroom materials, deionized water, and airborne molecular contamination; and analytical verification services for process tool chamber part cleaning. It primarily serves original equipment manufacturing customers in the semiconductor capital equipment and semiconductor integrated device manufacturing industries, as well as display, consumer, medical, energy, industrial, and research equipment industries. The company was founded in 1991 and is headquartered in Hayward, California.
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