Cree (NASDAQ: CREE) is one of 105 publicly-traded companies in the “Semiconductors” industry, but how does it compare to its competitors? We will compare Cree to similar companies based on the strength of its profitability, earnings, analyst recommendations, dividends, valuation, institutional ownership and risk.

Profitability

This table compares Cree and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cree -7.17% -0.13% -0.11%
Cree Competitors -45.83% 1.27% 0.68%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Cree and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cree 3 9 2 0 1.93
Cree Competitors 908 4732 8662 361 2.58

Cree currently has a consensus price target of $23.88, indicating a potential downside of 18.68%. As a group, “Semiconductors” companies have a potential upside of 9.53%. Given Cree’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Cree has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

91.4% of Cree shares are held by institutional investors. Comparatively, 66.5% of shares of all “Semiconductors” companies are held by institutional investors. 1.1% of Cree shares are held by insiders. Comparatively, 6.6% of shares of all “Semiconductors” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Cree and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Cree $1.47 billion $101.00 million -29.07
Cree Competitors $4.56 billion $1.34 billion 82.16

Cree’s competitors have higher revenue and earnings than Cree. Cree is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Cree has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, Cree’s competitors have a beta of 1.07, meaning that their average share price is 7% more volatile than the S&P 500.

Summary

Cree competitors beat Cree on 10 of the 12 factors compared.

Cree Company Profile

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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