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

Analyst Recommendations

This is a summary of recent ratings and target prices for Cree and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cree 3 9 2 0 1.93
Cree Competitors 911 4742 8676 364 2.58

Cree currently has a consensus target price of $25.38, suggesting a potential downside of 13.51%. As a group, “Semiconductors” companies have a potential upside of 9.67%. Given Cree’s peers stronger consensus rating and higher possible upside, analysts clearly believe Cree has less favorable growth aspects than its peers.

Profitability

This table compares Cree and its peers’ 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 -45.82% 1.42% 0.78%

Risk & Volatility

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

Institutional and Insider Ownership

91.2% of Cree shares are owned by institutional investors. Comparatively, 66.9% of shares of all “Semiconductors” companies are owned by institutional investors. 1.1% of Cree shares are owned by insiders. Comparatively, 6.2% of shares of all “Semiconductors” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Cree and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Cree $1.47 billion $101.00 million -29.05
Cree Competitors $4.62 billion $1.36 billion 80.74

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

Summary

Cree peers 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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