Reviewing Power Integrations (NASDAQ:POWI) and Credo Technology Group (NASDAQ:CRDO)

Power Integrations (NASDAQ:POWIGet Rating) and Credo Technology Group (NASDAQ:CRDOGet Rating) are both mid-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitability and dividends.

Profitability

This table compares Power Integrations and Credo Technology Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Power Integrations 24.01% 19.88% 17.87%
Credo Technology Group N/A N/A N/A

Insider and Institutional Ownership

98.1% of Power Integrations shares are held by institutional investors. Comparatively, 0.4% of Credo Technology Group shares are held by institutional investors. 1.6% of Power Integrations shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Power Integrations and Credo Technology Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Power Integrations $703.28 million 6.88 $164.41 million $2.80 29.64
Credo Technology Group $106.48 million 20.25 -$22.18 million N/A N/A

Power Integrations has higher revenue and earnings than Credo Technology Group.

Analyst Recommendations

This is a breakdown of recent recommendations for Power Integrations and Credo Technology Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Power Integrations 0 0 3 0 3.00
Credo Technology Group 0 0 8 0 3.00

Power Integrations currently has a consensus price target of $105.00, suggesting a potential upside of 26.54%. Credo Technology Group has a consensus price target of $19.00, suggesting a potential upside of 28.03%. Given Credo Technology Group’s higher possible upside, analysts plainly believe Credo Technology Group is more favorable than Power Integrations.

Summary

Power Integrations beats Credo Technology Group on 7 of the 10 factors compared between the two stocks.

About Power Integrations

(Get Rating)

Power Integrations, Inc. designs, develops, manufactures, and markets analog and mixed-signal integrated circuits (ICs), and other electronic components and circuitry used in high-voltage power conversion worldwide. The company provides a range of alternating current to direct current power conversion products that address power supply ranging from less than one watt of output to approximately 500 watts of output for mobile-device chargers, consumer appliances, utility meters, LCD monitors, main and standby power supplies for desktop computers and TVs, LED lighting, and various other consumer and industrial applications, as well as power conversion in high-power applications comprising industrial motors, solar and wind-power systems, electric vehicles, and high-voltage DC transmission systems. It also offers high-voltage diodes; high-voltage gate-driver products used to operate high-voltage switches, such as insulated-gate bipolar transistors and silicon-carbide MOSFETs under the SCALE and SCALE-2 product-family names; and SCALE-iDriver for use in powertrain and charging applications for electric vehicles. In addition, the company provides motor-driver ICs for use in refrigerator compressors, ceiling fans, and air purifiers, as well as pumps, fans, and blowers used in consumer appliances, such as dishwashers and laundry machines. It serves communications, computer, consumer, and industrial markets. The company sells its products to original equipment manufacturers and merchant power supply manufacturers through direct sales force, as well as a network of independent sales representatives and distributors. Power Integrations, Inc. was incorporated in 1988 and is headquartered in San Jose, California.

About Credo Technology Group

(Get Rating)

Credo Technology Group Holding Ltd provides various high-speed connectivity solutions for optical and electrical Ethernet applications in the United States, Mexico, Mainland China, Hong Kong, and internationally. Its products include integrated circuits, active electrical cables, and SerDes chiplets that are based on its serializer/deserializer and digital signal processor technologies. The company also offers intellectual property solutions consist of SerDes IP licensing. The company was founded in 2008 and is headquartered in San Jose, California.

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