Synaptics (NASDAQ:SYNA) & Credo Technology Group (NASDAQ:CRDO) Head-To-Head Contrast

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

Insider and Institutional Ownership

80.5% of Credo Technology Group shares are owned by institutional investors. Comparatively, 99.4% of Synaptics shares are owned by institutional investors. 11.8% of Credo Technology Group shares are owned by insiders. Comparatively, 0.5% of Synaptics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Credo Technology Group	31.81%	29.63%	26.20%
Synaptics	-5.41%	4.77%	2.58%

Volatility and Risk

Credo Technology Group has a beta of 2.72, indicating that its share price is 172% more volatile than the S&P 500. Comparatively, Synaptics has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Credo Technology Group and Synaptics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Credo Technology Group	0	2	13	2	3.00
Synaptics	1	3	10	0	2.64

Credo Technology Group presently has a consensus price target of $206.33, suggesting a potential upside of 103.38%. Synaptics has a consensus price target of $99.91, suggesting a potential upside of 34.74%. Given Credo Technology Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe Credo Technology Group is more favorable than Synaptics.

Earnings & Valuation

This table compares Credo Technology Group and Synaptics”s gross 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	42.84	$52.18 million	$1.80	56.36
Synaptics	$1.07 billion	2.67	-$47.80 million	($1.59)	-46.64

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

Summary

Credo Technology Group beats Synaptics 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 Synaptics

Synaptics Incorporated develops, markets, and sells semiconductor products worldwide. The company offers AudioSmart for voice and audio processing; ConnectSmart for high-speed video/audio/data connectivity; DisplayLink for transmitting compressed video frames across low bandwidth connections; VideoSmart that enables set-top boxes, over-the-top, streaming devices, soundbars, surveillance cameras, and smart displays; and ImagingSmart solutions. It also provides Natural ID, a fingerprint ID product that is used in notebook personal computers (PCs), PC peripherals, automobiles, and other applications; TouchPad, a touch-sensitive pad that senses the position and movement of one or more fingers on its surface; SecurePad that integrates fingerprint sensor directly into the TouchPad area; ClickPad that offers a clickable mechanical design; and ForcePad. In addition, the company offers ClearPad, which enables users to interact directly with the display on mobile smartphones, tablets, and automobiles; ClearView products that provide advanced image processing and low power technology for displays on smartphones and tablets; and TouchView products, a touch controller and display driver integration product. Further, it provides TouchPad with a pointing stick in a single notebook computer enabling users to select their interface of choice; TouchStyk, a self-contained pointing stick module; ultra-low power edge artificial intelligence platform for battery powered wireless devices; wireless connectivity solutions comprising Wi-Fi, Bluetooth, global positioning system, global navigation satellite system, and ULE; and voice over IP and digital enhanced cordless telecommunications solutions. The company sells its products through direct sales, outside sales representatives, distributors, and resellers to mobile and PC OEMs; IoT OEMs; and automotive and consumer electronics manufacturers. The company was incorporated in 1986 and is headquartered in San Jose, California.