Reviewing Credo Technology Group (NASDAQ:CRDO) and Axcelis Technologies (NASDAQ:ACLS)

Axcelis Technologies (NASDAQ:ACLS) and Credo Technology Group (NASDAQ:CRDO) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, valuation, dividends, profitability and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Axcelis Technologies and Credo Technology Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Axcelis Technologies	1	3	1	0	2.00
Credo Technology Group	0	3	14	1	2.89

Axcelis Technologies presently has a consensus target price of $148.67, indicating a potential upside of 0.61%. Credo Technology Group has a consensus target price of $264.89, indicating a potential upside of 21.15%. Given Credo Technology Group’s stronger consensus rating and higher possible upside, analysts plainly believe Credo Technology Group is more favorable than Axcelis Technologies.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Axcelis Technologies	$839.05 million	5.44	$120.24 million	$2.98	49.59
Credo Technology Group	$1.34 billion	30.78	$472.28 million	$2.81	77.81

Credo Technology Group has higher revenue and earnings than Axcelis Technologies. Axcelis Technologies 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Axcelis Technologies	10.71%	11.69%	8.89%
Credo Technology Group	33.83%	28.77%	25.93%

Insider and Institutional Ownership

90.0% of Axcelis Technologies shares are owned by institutional investors. Comparatively, 80.5% of Credo Technology Group shares are owned by institutional investors. 0.5% of Axcelis Technologies shares are owned by company insiders. Comparatively, 9.1% of Credo Technology Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Axcelis Technologies has a beta of 1.86, suggesting that its stock price is 86% more volatile than the S&P 500. Comparatively, Credo Technology Group has a beta of 3.25, suggesting that its stock price is 225% more volatile than the S&P 500.

Summary

Credo Technology Group beats Axcelis Technologies on 13 of the 15 factors compared between the two stocks.

About Axcelis Technologies

Axcelis Technologies, Inc. designs, manufactures, and services ion implantation and other processing equipment used in the fabrication of semiconductor chips in the United States, Europe, and Asia Pacific. The company offers high energy, high current, and medium current implanters for various application requirements. It also provides aftermarket lifecycle products and services, including used tools, spare parts, equipment upgrades, maintenance services, and customer training. It sells its equipment and services to semiconductor chip manufacturers through its direct sales force. The company was founded in 1978 and is headquartered in Beverly, Massachusetts.

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.