Cree (NASDAQ: CREE) is one of 104 publicly-traded companies in the “Semiconductors” industry, but how does it weigh in compared to its rivals? We will compare Cree to related businesses based on the strength of its earnings, analyst recommendations, institutional ownership, risk, profitability, valuation and dividends.

Risk and Volatility

Cree has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500. Comparatively, Cree’s rivals have a beta of 1.05, indicating that their average share price is 5% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Cree -8.42% -0.44% -0.37%
Cree Competitors -46.43% 1.05% 0.79%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Cree and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cree 4 8 2 0 1.86
Cree Competitors 920 4781 8687 363 2.58

Cree currently has a consensus price target of $26.21, indicating a potential downside of 23.23%. As a group, “Semiconductors” companies have a potential upside of 0.46%. Given Cree’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Cree has less favorable growth aspects than its rivals.

Earnings and Valuation

This table compares Cree and its rivals gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Cree $1,473.00 -$98.11 -27.98
Cree Competitors $4,268.18 $517.81 22.08

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

Institutional & Insider Ownership

91.0% of Cree shares are owned by institutional investors. Comparatively, 65.2% of shares of all “Semiconductors” companies are owned by institutional investors. 1.1% of Cree shares are owned by insiders. Comparatively, 6.7% of shares of all “Semiconductors” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Cree rivals beat Cree on 9 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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