MaxLinear (NASDAQ:MXL – Get Free Report) and Credo Technology Group (NASDAQ:CRDO – Get Free Report) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.
Volatility and Risk
MaxLinear has a beta of 1.76, meaning that its share price is 76% more volatile than the S&P 500. Comparatively, Credo Technology Group has a beta of 2.16, meaning that its share price is 116% more volatile than the S&P 500.
Valuation and Earnings
This table compares MaxLinear and Credo Technology Group”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MaxLinear | $360.53 million | 2.58 | -$245.20 million | ($2.93) | -3.75 |
| Credo Technology Group | $327.53 million | 21.00 | -$28.37 million | $0.01 | 4,051.00 |
Profitability
This table compares MaxLinear and Credo Technology Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MaxLinear | -68.01% | -21.94% | -13.58% |
| Credo Technology Group | -9.70% | -2.94% | -2.60% |
Institutional & Insider Ownership
90.8% of MaxLinear shares are owned by institutional investors. Comparatively, 80.5% of Credo Technology Group shares are owned by institutional investors. 8.6% of MaxLinear shares are owned by company insiders. Comparatively, 16.0% of Credo Technology Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings for MaxLinear and Credo Technology Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MaxLinear | 0 | 3 | 4 | 0 | 2.57 |
| Credo Technology Group | 0 | 0 | 9 | 1 | 3.10 |
MaxLinear currently has a consensus price target of $25.50, indicating a potential upside of 132.03%. Credo Technology Group has a consensus price target of $74.90, indicating a potential upside of 84.89%. Given MaxLinear’s higher possible upside, equities analysts plainly believe MaxLinear is more favorable than Credo Technology Group.
Summary
Credo Technology Group beats MaxLinear on 11 of the 15 factors compared between the two stocks.
About MaxLinear
MaxLinear, Inc. provides communications systems-on-chip solutions worldwide. Its products integrate various portions of a high-speed communication system, including radio frequency, high-performance analog, mixed-signal, digital signal processing, security engines, data compression and networking layers, and power management. The company's products are used in various electronic devices, such as radio transceivers and modems for 4G/5G base-station and backhaul infrastructure; optical transceivers targeting hyperscale data centers; Wi-Fi and wireline routers for home networking; broadband modems compliant with data over cable service interface specifications, passive optical fiber standards, and digital subscriber line, as well as power management and interface products. It serves electronics distributors, module makers, original equipment manufacturers, and original design manufacturers through a direct sales force, third-party sales representatives, and a network of distributors. The company was incorporated in 2003 and is headquartered in Carlsbad, California.
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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