Credo Technology Group (NASDAQ:CRDO) and nLight (NASDAQ:LASR) Critical Survey

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

Valuation & Earnings

This table compares Credo Technology Group and nLight”s gross 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	95.48	$52.18 million	$1.80	125.61
nLight	$289.84 million	13.74	-$23.47 million	($0.30)	-235.27

Credo Technology Group has higher revenue and earnings than nLight. nLight 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.

Risk & Volatility

Credo Technology Group has a beta of 3.22, suggesting that its share price is 222% more volatile than the S&P 500. Comparatively, nLight has a beta of 2.34, suggesting that its share price is 134% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Credo Technology Group and nLight, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Credo Technology Group	0	2	15	2	3.00
nLight	1	1	9	1	2.83

Credo Technology Group presently has a consensus price target of $225.65, suggesting a potential downside of 0.20%. nLight has a consensus price target of $69.06, suggesting a potential downside of 2.15%. Given Credo Technology Group’s stronger consensus rating and higher possible upside, analysts plainly believe Credo Technology Group is more favorable than nLight.

Profitability

This table compares Credo Technology Group and nLight’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%
nLight	-5.08%	-4.18%	-3.20%

Institutional and Insider Ownership

80.5% of Credo Technology Group shares are owned by institutional investors. Comparatively, 83.9% of nLight shares are owned by institutional investors. 11.8% of Credo Technology Group shares are owned by insiders. Comparatively, 3.1% of nLight 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.

Summary

Credo Technology Group beats nLight 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 nLight

nLIGHT, Inc. designs, develops, manufactures, and sells semiconductor and fiber lasers for industrial, microfabrication, and aerospace and defense applications. The company operates in two segments, Laser Products and Advanced Development. It offers semiconductor lasers with various ranges of power levels, wavelengths, and output fiber sizes; and programmable and serviceable fiber lasers for use in industrial and aerospace and defense applications. The company also provides laser sensors, including light detection and ranging technologies for intelligence, surveillance, and reconnaissance applications; and fiber amplifiers, beam combination, and control systems for use in high-energy laser systems in directed energy applications. It sells its products through direct sales force in the United States, China, South Korea, and European countries, as well as through independent sales representatives and distributors in Asia, Australia, Europe, the Middle East, and South America. The company was formerly known as nLight Photonics Corporation and changed its name to nLIGHT, Inc. in January 2016. nLIGHT, Inc. was incorporated in 2000 and is headquartered in Camas, Washington.