Axcelis Technologies (NASDAQ:ACLS – Get Free Report) and Credo Technology Group (NASDAQ:CRDO – Get Free Report) are both technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.
Analyst Ratings
This is a summary of current ratings and price targets for Axcelis Technologies and Credo Technology Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Axcelis Technologies | 1 | 3 | 1 | 0 | 2.00 |
| Credo Technology Group | 0 | 3 | 14 | 1 | 2.89 |
Axcelis Technologies currently has a consensus target price of $148.67, indicating a potential upside of 11.38%. Credo Technology Group has a consensus target price of $262.67, indicating a potential upside of 23.98%. Given Credo Technology Group’s stronger consensus rating and higher probable upside, analysts plainly believe Credo Technology Group is more favorable than Axcelis Technologies.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Axcelis Technologies | $839.05 million | 4.91 | $120.24 million | $2.98 | 44.79 |
| Credo Technology Group | $1.34 billion | 29.82 | $472.28 million | $2.81 | 75.40 |
Credo Technology Group has higher revenue and earnings than Axcelis Technologies. Axcelis Technologies 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.
Profitability
This table compares Axcelis Technologies and Credo Technology Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Axcelis Technologies | 10.71% | 11.69% | 8.89% |
| Credo Technology Group | 33.83% | 28.77% | 25.93% |
Risk and Volatility
Axcelis Technologies has a beta of 1.86, meaning that its stock price is 86% more volatile than the S&P 500. Comparatively, Credo Technology Group has a beta of 3.25, meaning that its stock price is 225% more volatile than the S&P 500.
Institutional & Insider Ownership
90.0% of Axcelis Technologies shares are held by institutional investors. Comparatively, 80.5% of Credo Technology Group shares are held by institutional investors. 0.5% of Axcelis Technologies shares are held by company insiders. Comparatively, 9.1% of Credo Technology Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
Credo Technology Group beats Axcelis Technologies on 13 of the 15 factors compared between the two stocks.
About Axcelis Technologies
Axcelis Technologies, Inc. designs, manufactures, and services ion implantation and other processing equipment used in the fabrication of semiconductor chips in the United States, Europe, and Asia Pacific. The company offers high energy, high current, and medium current implanters for various application requirements. It also provides aftermarket lifecycle products and services, including used tools, spare parts, equipment upgrades, maintenance services, and customer training. It sells its equipment and services to semiconductor chip manufacturers through its direct sales force. The company was founded in 1978 and is headquartered in Beverly, Massachusetts.
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.
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