Comparing Credo Technology Group (NASDAQ:CRDO) & Sequans Communications (NYSE:SQNS)

Credo Technology Group (NASDAQ:CRDO) and Sequans Communications (NYSE:SQNS) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.

Volatility & Risk

Credo Technology Group has a beta of 2.6, indicating that its stock price is 160% more volatile than the S&P 500. Comparatively, Sequans Communications has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500.

Earnings and Valuation

This table compares Credo Technology Group and Sequans Communications”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	$436.77 million	52.05	$52.18 million	$0.67	196.13
Sequans Communications	$36.76 million	3.10	$57.57 million	$18.50	0.43

Sequans Communications has lower revenue, but higher earnings than Credo Technology Group. Sequans Communications 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.

Insider and Institutional Ownership

80.5% of Credo Technology Group shares are owned by institutional investors. Comparatively, 63.3% of Sequans Communications shares are owned by institutional investors. 11.8% of Credo Technology Group shares are owned by company insiders. Comparatively, 9.4% of Sequans Communications shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Credo Technology Group	20.85%	19.02%	16.40%
Sequans Communications	142.92%	119.94%	47.45%

Analyst Ratings

This is a breakdown of current ratings and target prices for Credo Technology Group and Sequans Communications, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Credo Technology Group	0	1	13	2	3.06
Sequans Communications	1	0	1	1	2.67

Credo Technology Group currently has a consensus price target of $128.55, suggesting a potential downside of 2.18%. Sequans Communications has a consensus price target of $3.50, suggesting a potential downside of 55.95%. Given Credo Technology Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe Credo Technology Group is more favorable than Sequans Communications.

Summary

Credo Technology Group beats Sequans Communications on 10 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 Sequans Communications

Sequans Communications S.A. engages in the fabless designing, developing, and supplying of cellular semiconductor solutions for massive and broadband Internet of Things (IoT) markets in Taiwan, Korea, China, rest of Asia, Germany, the United States, and internationally. It offers baseband solutions for use in encoding and decoding data based on 4G and 5G protocols for wireless processing platform for a cellular device; RF transceivers used to transmit and receive wireless transmissions; highly integrated SoC solutions that combine various functions into a single die or package; and LTE modules. The company also provides software, including source code and tools to enable manufacturers to integrate their solutions into their devices; and design support services. The company serves OEMs and ODMs Customers, as well as 4G and 5G wireless carriers. Sequans Communications S.A. was incorporated in 2003 and is based in Paris, France.