Credo Technology Group (NASDAQ:CRDO) vs. Qnity Electronics (NYSE:Q) Head-To-Head Contrast

Credo Technology Group (NASDAQ:CRDO) and Qnity Electronics (NYSE:Q) are both large-cap technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Credo Technology Group	33.83%	28.77%	25.93%
Qnity Electronics	11.25%	10.83%	6.26%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Credo Technology Group	0	3	15	1	2.89
Qnity Electronics	0	1	8	1	3.00

Credo Technology Group currently has a consensus target price of $267.39, indicating a potential upside of 59.40%. Qnity Electronics has a consensus target price of $151.78, indicating a potential upside of 23.08%. Given Credo Technology Group’s higher possible upside, equities analysts plainly believe Credo Technology Group is more favorable than Qnity Electronics.

Institutional and Insider Ownership

80.5% of Credo Technology Group shares are owned by institutional investors. 9.1% of Credo Technology Group shares are owned by insiders. Comparatively, 0.2% of Qnity Electronics shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Credo Technology Group	$1.34 billion	23.61	$472.28 million	$2.81	59.70
Qnity Electronics	$5.21 billion	4.95	$692.00 million	$2.80	44.04

Qnity Electronics has higher revenue and earnings than Credo Technology Group. Qnity Electronics 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.

Summary

Credo Technology Group beats Qnity Electronics on 10 of the 13 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 Qnity Electronics

Qnity Electronics Inc. is a premier technology solution provider across the semiconductor value chain. Qnity Electronics Inc. is based in WILMINGTON, Del.