Financial Review: ASE Technology (NYSE:ASX) & Credo Technology Group (NASDAQ:CRDO)

Credo Technology Group (NASDAQ:CRDOGet Rating) and ASE Technology (NYSE:ASXGet Rating) are both business services companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.

Institutional & Insider Ownership

0.4% of Credo Technology Group shares are held by institutional investors. Comparatively, 6.5% of ASE Technology shares are held by institutional investors. 22.9% of ASE Technology shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Credo Technology Group 0 0 8 0 3.00
ASE Technology 0 4 0 0 2.00

Credo Technology Group currently has a consensus price target of $20.75, suggesting a potential upside of 93.74%. ASE Technology has a consensus price target of $8.10, suggesting a potential upside of 24.42%. Given Credo Technology Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Credo Technology Group is more favorable than ASE Technology.

Profitability

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

Net Margins Return on Equity Return on Assets
Credo Technology Group N/A N/A N/A
ASE Technology 11.49% 26.31% 10.37%

Earnings & Valuation

This table compares Credo Technology Group and ASE Technology’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Credo Technology Group N/A N/A N/A N/A N/A
ASE Technology $20.41 billion 0.70 $2.17 billion $1.10 5.92

ASE Technology has higher revenue and earnings than Credo Technology Group.

Summary

ASE Technology beats Credo Technology Group on 6 of the 9 factors compared between the two stocks.

About Credo Technology Group (Get Rating)

Credo Technology Group Holding Ltd provides various high-speed connectivity solutions for optical and electrical Ethernet applications in the United States, Mexico, Malaysia, 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 intellectual property solutions consist of SerDes IP licensing. The company was founded in 2008 and is headquartered in San Jose, California.

About ASE Technology (Get Rating)

ASE Technology Holding Co., Ltd. provides a range of semiconductors packaging and testing, and electronic manufacturing services in the United States, Taiwan, rest of Asia, Europe, and internationally. It offers packaging services, including flip chip ball grid array (BGA) and chip scale package (CSP), advanced chip scale packages, quad flat packages, low profile and thin quad flat packages, bump chip carrier and quad flat no-lead (QFN) packages, advanced QFN packages, plastic BGAs, and 3D chip packages; stacked die solutions in various packages; and copper and silver wire bonding solutions. The company also provides advanced packages, such as flip chip BGA; heat-spreader FCBGA; flip-chip CSP; hybrid FCCSP; flip chip package in package and package on package (POP); advanced single sided substrate; high-bandwidth POP; fan-out wafer-level packaging; SESUB; and 2.5D silicon interposer. In addition, it offers IC wire bonding packages; system-in-package products (SiP) and modules; and interconnect materials, as well as assembles automotive electronic products. Further, the company provides a range of semiconductor testing services, including front-end engineering testing, wafer probing, logic/mixed-signal/RF module and SiP/MEMS/discrete final testing, and other test-related services, as well as drop shipment services. Additionally, it develops, constructs, sells, leases, and manages real estate properties; produces substrates; offers information software, equipment leasing, investment advisory, and warehousing management services; processes and sells computer and communication peripherals, electronic components, telecommunications equipment, and motherboards; and imports and exports goods and technology. The company was incorporated in 1984 and is headquartered in Kaohsiung, Taiwan.

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