Critical Survey: Diodes (DIOD) and Cree (CREE)
Diodes (NASDAQ: DIOD) and Cree (NASDAQ:CREE) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.
This table compares Diodes and Cree’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and price targets for Diodes and Cree, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Diodes presently has a consensus price target of $36.50, suggesting a potential upside of 21.79%. Cree has a consensus price target of $28.81, suggesting a potential downside of 24.88%. Given Diodes’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Diodes is more favorable than Cree.
Volatility and Risk
Diodes has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, Cree has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.
Institutional and Insider Ownership
74.7% of Diodes shares are held by institutional investors. Comparatively, 98.7% of Cree shares are held by institutional investors. 7.0% of Diodes shares are held by insiders. Comparatively, 1.1% of Cree shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Diodes and Cree’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Diodes||$942.16 million||1.57||$15.93 million||$0.60||49.95|
|Cree||$1.47 billion||2.56||-$98.11 million||($1.22)||-31.43|
Diodes has higher earnings, but lower revenue than Cree. Cree is trading at a lower price-to-earnings ratio than Diodes, indicating that it is currently the more affordable of the two stocks.
Diodes beats Cree on 9 of the 14 factors compared between the two stocks.
Diodes Incorporated is a manufacturer and supplier of application-specific standard products within the discrete, logic, analog and mixed-signal semiconductor markets, serving the consumer electronics, computing, communications, industrial and automotive markets. The Company’s products include diodes; rectifiers; transistors; metal-oxide semiconductor field-effect transistors (MOSFETs); protection devices; amplifiers and comparators; Hall-effect and temperature sensors, and power management devices, including light emitting diode (LED) drivers, alternating current (AC)-direct current (DC) and DC-DC switching, linear voltage regulators and voltage references, along with special function devices, such as universal serial bus (USB) power switches, load switches, voltage supervisors and motor controllers. It also holds interests in Pericom Semiconductor Corporation, which designs, develops and markets integrated circuits (ICs) and frequency control products (FCPs).
Cree, Inc. is a manufacturer of lighting-class light emitting diode (LED) products, lighting products and semiconductor products for power and radio-frequency (RF) applications. The Company’s products are focused for applications, such as indoor and outdoor lighting, video displays, transportation, electronic signs and signals, power supplies, inverters and wireless systems. The Company has three segments: Lighting Products, LED Products, and Power and RF Products. The Company’s Lighting Products segment offers LED lighting systems and bulbs. The Company’s LED Products segment offers LED components, LED chips and silicon carbide (SiC) materials. The Company’s Power and RF Products segment offers power devices and RF devices. The Company designs, manufactures and markets lighting systems for indoor and outdoor applications, with a focus on LED lighting systems for the commercial, industrial and consumer markets.
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