Comparing Credo Technology Group (NASDAQ:CRDO) & Axcelis Technologies (NASDAQ:ACLS)

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

Profitability

This table compares Credo Technology Group and Axcelis Technologies’ 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%
Axcelis Technologies	11.74%	11.51%	8.75%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Credo Technology Group	0	3	14	1	2.89
Axcelis Technologies	1	2	2	0	2.20

Credo Technology Group currently has a consensus target price of $262.67, suggesting a potential upside of 117.96%. Axcelis Technologies has a consensus target price of $145.33, suggesting a potential upside of 46.45%. Given Credo Technology Group’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Credo Technology Group is more favorable than Axcelis Technologies.

Earnings and Valuation

This table compares Credo Technology Group and Axcelis Technologies”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	16.96	$472.28 million	$2.81	42.89
Axcelis Technologies	$839.05 million	3.65	$120.24 million	$3.36	29.54

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.

Risk and Volatility

Credo Technology Group has a beta of 3.29, suggesting that its share price is 229% more volatile than the S&P 500. Comparatively, Axcelis Technologies has a beta of 1.88, suggesting that its share price is 88% more volatile than the S&P 500.

Institutional and Insider Ownership

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

Summary

Credo Technology Group beats Axcelis Technologies 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 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.