SuperCom (NASDAQ:SPCB) & Credo Technology Group (NASDAQ:CRDO) Head-To-Head Analysis

Credo Technology Group (NASDAQ:CRDO) and SuperCom (NASDAQ:SPCB) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.

Insider and Institutional Ownership

80.5% of Credo Technology Group shares are held by institutional investors. Comparatively, 47.8% of SuperCom shares are held by institutional investors. 23.9% of Credo Technology Group shares are held by insiders. Comparatively, 18.3% of SuperCom shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Credo Technology Group has a beta of 1.97, suggesting that its share price is 97% more volatile than the S&P 500. Comparatively, SuperCom has a beta of 0.27, suggesting that its share price is 73% less volatile than the S&P 500.

Valuation & Earnings

This table compares Credo Technology Group and SuperCom’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Credo Technology Group	$184.19 million	16.48	-$16.55 million	($0.23)	-80.83
SuperCom	$17.65 million	0.12	-$7.46 million	($0.51)	-0.71

SuperCom has lower revenue, but higher earnings than Credo Technology Group. Credo Technology Group is trading at a lower price-to-earnings ratio than SuperCom, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Credo Technology Group	-20.59%	-7.82%	-6.89%
SuperCom	-9.79%	91.58%	9.26%

Analyst Ratings

This is a breakdown of current recommendations for Credo Technology Group and SuperCom, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Credo Technology Group	1	1	6	0	2.63
SuperCom	0	0	0	0	N/A

Credo Technology Group currently has a consensus target price of $24.25, indicating a potential upside of 30.45%. Given Credo Technology Group’s higher probable upside, research analysts plainly believe Credo Technology Group is more favorable than SuperCom.

Summary

Credo Technology Group beats SuperCom on 8 of the 13 factors compared between the two stocks.

About Credo Technology Group

Credo Technology Group Holding Ltd provides various high-speed connectivCredo Technology Group Holding Ltd provides various high-speed connectivity solutions for optical and electrical Ethernet applications in the United States, Mexico, 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. 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 headquartered in San Jose, California.ity solutions for optical and electrical Ethernet applications in the United States, Mexico, Mainland China, Hong Kong, and internationally. Its products include integrated circuits, active electrical cables, and SerDes chiplets that are based on its serializer/deserializer and digital signal processor technologies. The company also offers intellectual property solutions consist of SerDes IP licensing. The company was founded in 2008 and is headquartered in San Jose, California.

About SuperCom

SuperCom Ltd. provides digital identity, Internet of Things and connectivity, and cyber security products and solutions to governments, and private and public organizations worldwide. The company operates in three segments: e-Gov, IoT and Connectivity, and Cyber Security. It offers MAGNA, a platform for national ID registries, e-passports, biometric visas, automated fingerprint identification systems, digitized driver's licenses, and electronic voter registration and election management. The company also provides PureRF, a solution based on RFID tag technology to identify, locate, track, monitor, count, and protect people and objects. Its PureRF suite includes PureRF Tags, Hands-Free Long-Range RFID Asset and Vehicle Tags, PureRF Readers, PureRF Activators, PureRF Initializer, House Arrest Monitoring System, PureRF RF Bracelet, PureCom RF Base Station, GOS Offender Tracking System, PureTrack, PureBeacon, PureMonitor Offender Electronic Monitoring Software, Inmate Monitoring System, DoorGuard, and Personnel Tag. In addition, the company offers domestic violence victim protection systems. Further, it provides connectivity products and solutions comprising AVIDITY WBSac, BOLSTER WBSn, BreezeULTRA P6000, Arena controller, and BreezeNET B; cyber security strategic business unit products and solutions, which include Safend Encryptor, Safend Protector, Safend Inspector, Safend Discoverer, and SafeMobile; and wireless and RFID products include solutions for carrier Wi-Fi, enterprise connectivity, smart city, smart hospitality, connected campuses, and connected events. It sells its systems and products through local representatives, subsidiaries, and distribution channels, as well as independent representatives, resellers, and distributors. The company was formerly known as Vuance Ltd. and changed its name to SuperCom Ltd. in January 2013. SuperCom Ltd. was incorporated in 1988 and is headquartered in Tel Aviv, Israel.