Analyzing ams-OSRAM (OTCMKTS:AMSSY) and Credo Technology Group (NASDAQ:CRDO)

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

Profitability

This table compares Credo Technology Group and ams-OSRAM’s 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%
ams-OSRAM	-3.76%	6.11%	0.96%

Institutional and Insider Ownership

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

Valuation & Earnings

This table compares Credo Technology Group and ams-OSRAM”s top-line revenue, earnings per share (EPS) 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
ams-OSRAM	$3.76 billion	0.26	-$147.08 million	($0.71)	-6.85

Credo Technology Group has higher earnings, but lower revenue than ams-OSRAM. ams-OSRAM 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.

Analyst Ratings

This is a summary of current ratings and recommmendations for Credo Technology Group and ams-OSRAM, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Credo Technology Group	0	2	13	2	3.00
ams-OSRAM	1	3	0	0	1.75

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

Volatility & Risk

Credo Technology Group has a beta of 2.72, meaning that its share price is 172% more volatile than the S&P 500. Comparatively, ams-OSRAM has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500.

Summary

Credo Technology Group beats ams-OSRAM on 14 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 ams-OSRAM

ams-OSRAM AG designs, manufactures, and sells LED and optical sensor solutions in Europe, the Middle East, Africa, the Americas, and Asia/Pacific. The company operates in Semiconductors and Lamps & Systems segments. The Semiconductors segment offers semiconductor-based products and solutions, such as high-performance LEDs, lasers, and optical sensors for automotive, consumer, and industrial and medical technology end markets. The Lamps & Systems segment provides lamps and lighting systems for the automotive, industrial, and medical end markets. The company was formerly known as ams AG and changed its name to ams-OSRAM AG in January 2022. ams-OSRAM AG is headquartered in Premstätten, Austria.