SkyWater Technology (NASDAQ:SKYT – Get Free Report) and Credo Technology Group (NASDAQ:CRDO – Get Free Report) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.
Profitability
This table compares SkyWater Technology and Credo Technology Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SkyWater Technology | 36.36% | -4.96% | -1.05% |
| Credo Technology Group | 26.63% | 25.28% | 21.92% |
Analyst Ratings
This is a summary of current recommendations for SkyWater Technology and Credo Technology Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SkyWater Technology | 1 | 1 | 5 | 0 | 2.57 |
| Credo Technology Group | 0 | 1 | 13 | 2 | 3.06 |
Institutional and Insider Ownership
70.0% of SkyWater Technology shares are owned by institutional investors. Comparatively, 80.5% of Credo Technology Group shares are owned by institutional investors. 37.9% of SkyWater Technology shares are owned by company insiders. Comparatively, 11.8% of Credo Technology Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares SkyWater Technology and Credo Technology Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SkyWater Technology | $342.27 million | 2.55 | -$6.79 million | $2.58 | 6.98 |
| Credo Technology Group | $436.77 million | 62.11 | $52.18 million | $1.14 | 131.73 |
Credo Technology Group has higher revenue and earnings than SkyWater Technology. SkyWater Technology 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.
Volatility and Risk
SkyWater Technology has a beta of 3.5, meaning that its share price is 250% more volatile than the S&P 500. Comparatively, Credo Technology Group has a beta of 2.63, meaning that its share price is 163% more volatile than the S&P 500.
Summary
Credo Technology Group beats SkyWater Technology on 11 of the 15 factors compared between the two stocks.
About SkyWater Technology
SkyWater Technology, Inc., together with its subsidiaries, operates as a pure-play technology foundry that engages in the provision of semiconductor development, manufacturing, and packaging services in the United States. The company offers engineering and process development support services to co-create technologies with customers; and semiconductor manufacturing services for various silicon-based analog and mixed-signal, micro-electromechanical systems, and rad-hard integrated circuits. It serves customers operating in the computation, aerospace and defense, automotive, bio-health, consumer, and industrial sectors. The company was incorporated in 2016 and is headquartered in Bloomington, Minnesota.
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.
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