Credo Technology Group (NASDAQ:CRDO) & United Microelectronics (NYSE:UMC) Critical Comparison

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

Institutional & Insider Ownership

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

Volatility and Risk

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Microelectronics	$223.46 billion	0.09	$1.95 billion	$0.70	11.04
Credo Technology Group	$217.59 million	28.32	-$28.37 million	($0.18)	-207.28

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.

Profitability

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

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

Analyst Ratings

This is a summary of current recommendations and price targets for United Microelectronics and Credo Technology Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Microelectronics	0	2	1	0	2.33
Credo Technology Group	1	0	7	1	2.89

United Microelectronics presently has a consensus target price of $7.40, suggesting a potential downside of 4.21%. Credo Technology Group has a consensus target price of $35.44, suggesting a potential downside of 5.00%. Given United Microelectronics’ higher probable upside, analysts clearly 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 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.

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.