Analyzing Credo Technology Group (NASDAQ:CRDO) and United Microelectronics (NYSE:UMC)

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

Risk and Volatility

Credo Technology Group has a beta of 2.24, meaning that its stock price is 124% more volatile than the S&P 500. Comparatively, United Microelectronics has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Credo Technology Group	-12.05%	-3.74%	-3.30%
United Microelectronics	23.90%	14.80%	9.41%

Institutional & Insider Ownership

80.5% of Credo Technology Group shares are held by institutional investors. Comparatively, 5.1% of United Microelectronics shares are held by institutional investors. 23.9% of Credo Technology Group shares are held by company insiders. Comparatively, 8.0% of United Microelectronics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Credo Technology Group and United Microelectronics”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	$217.59 million	27.96	-$28.37 million	($0.18)	-204.61
United Microelectronics	$223.46 billion	0.09	$1.95 billion	$0.70	11.41

United Microelectronics has higher revenue and earnings than Credo Technology Group. Credo Technology Group is trading at a lower price-to-earnings ratio than United Microelectronics, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Credo Technology Group	1	0	7	1	2.89
United Microelectronics	0	1	2	0	2.67

Credo Technology Group currently has a consensus price target of $35.44, indicating a potential downside of 3.58%. United Microelectronics has a consensus price target of $8.90, indicating a potential upside of 10.97%. Given United Microelectronics’ higher possible upside, analysts plainly believe United Microelectronics is more favorable than Credo Technology Group.

Summary

United Microelectronics beats Credo Technology Group on 8 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 United Microelectronics

United Microelectronics Corporation operates as a semiconductor wafer foundry in Taiwan, China, Hong Kong, Japan, Korea, the United States, Europe, and internationally. The company provides circuit design, mask tooling, wafer fabrication, and assembly and testing services. It serves fabless design companies and integrated device manufacturers. United Microelectronics Corporation was incorporated in 1980 and is headquartered in Hsinchu City, Taiwan.