Financial Survey: Renesas Electronics (OTCMKTS:RNECY) & Credo Technology Group (NASDAQ:CRDO)

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

Insider and Institutional Ownership

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

Analyst Ratings

This is a summary of current recommendations and price targets for Credo Technology Group and Renesas Electronics, 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
Renesas Electronics	0	0	0	0	N/A

Credo Technology Group currently has a consensus target price of $36.56, indicating a potential downside of 6.70%. Given Credo Technology Group’s higher possible upside, analysts clearly believe Credo Technology Group is more favorable than Renesas Electronics.

Earnings & Valuation

This table compares Credo Technology Group and Renesas Electronics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Credo Technology Group	$217.59 million	29.74	-$28.37 million	($0.18)	-217.67
Renesas Electronics	N/A	N/A	N/A	N/A	N/A

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

Profitability

This table compares Credo Technology Group and Renesas Electronics’ 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%
Renesas Electronics	N/A	N/A	N/A

Summary

Credo Technology Group beats Renesas Electronics on 6 of the 9 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 Renesas Electronics

Renesas Electronics Corporation researches, develops, designs, manufactures, sells, and services semiconductors in Japan, China, rest of Asia, Europe, North America, and internationally. The company operates through Automotive Business and Industrial/Infrastructure/IoT Business segments. It offers microcontrollers (MCUs) and microprocessors; amplifiers, audio and video, data converters, power line communication, and switches and multiplexer products; and specific clocks, clock distribution and generation, jitter attenuators with frequency translation, and crystal oscillator, and VersaClock programmable clocks. The company also provides buffers, haptic drivers, data compression, industrial Ethernet, IO-link line driver, memory interface, optical interconnect, photocouplers/optocouplers, power line communication, signal integrity, telecom datacom and interface, USB switches and hubs, and wireless connectivity products. In addition, it offers bus switches, first-in, first-out, memory interface, multi-port and SRAMs, non-volatile memory, and standard logic products; and AC/DC & isolated DC/DC converters, battery management, DC converters, digital power, discrete power devices, linear regulators, FET and motor drivers, multi-channel power management ICs, LED backlight drivers, solid state lighting, USB type-C, USB power delivery, and rapid charge, voltage references, and wireless power. Further, the company provides Automotive Radar Sensors, Industrial Radar Sensors, modulators and demodulators, phased array beamformers, transistor arrays, and variable gain amplifiers, as well as RF amplifiers, attenuators, mixers, switches, and synthesizers; and environmental, flow, industrial radar, optical, position, and automotive sensor products, as well as senor signal conditioners products. Additionally, it offers space and harsh environment products and wireless connectivity products. Renesas Electronics Corporation was incorporated in 2002 and is headquartered in Tokyo, Japan.