Contrasting Impinj (NASDAQ:PI) and Credo Technology Group (NASDAQ:CRDO)

Credo Technology Group (NASDAQ:CRDO) and Impinj (NASDAQ:PI) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, earnings, valuation and dividends.

Volatility and Risk

Credo Technology Group has a beta of 2.67, indicating that its share price is 167% more volatile than the S&P 500. Comparatively, Impinj has a beta of 1.56, indicating that its share price is 56% more volatile than the S&P 500.

Profitability

This table compares Credo Technology Group and Impinj’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Credo Technology Group	31.81%	29.63%	26.20%
Impinj	-3.00%	8.49%	3.11%

Analyst Ratings

This is a summary of current ratings and recommmendations for Credo Technology Group and Impinj, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Credo Technology Group	0	2	13	2	3.00
Impinj	2	2	5	0	2.33

Credo Technology Group presently has a consensus price target of $206.33, suggesting a potential upside of 113.95%. Impinj has a consensus price target of $167.63, suggesting a potential upside of 64.69%. Given Credo Technology Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe Credo Technology Group is more favorable than Impinj.

Institutional and Insider Ownership

80.5% of Credo Technology Group shares are owned by institutional investors. 11.8% of Credo Technology Group shares are owned by company insiders. Comparatively, 12.4% of Impinj shares are owned 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.

Earnings and Valuation

This table compares Credo Technology Group and Impinj”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Credo Technology Group	$436.77 million	40.73	$52.18 million	$1.80	53.58
Impinj	$361.08 million	8.52	-$10.85 million	($0.39)	-260.97

Credo Technology Group has higher revenue and earnings than Impinj. Impinj 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.

Summary

Credo Technology Group beats Impinj on 14 of the 15 factors compared between the two stocks.

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.

About Impinj

Impinj, Inc. operates a cloud connectivity platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Its platform wirelessly connects items and delivers data about the connected items to business and consumer applications. The company’s platform comprises endpoint ICs, a miniature radios-on-a-chip that attaches to a host item and includes a number to identify the item. Its platform also consists of systems products that consists of reader ICs, readers, and gateways to wirelessly provide power to and communicate bidirectionally with endpoint ICs on host items, as well as to read, write, authenticate, and engage the endpoint ICs on those items; and software and algorithms that enable its partners to solve enterprise business problems, such as retail self-checkout and loss prevention. The company primarily serves retail, supply chain and logistics, automotive, aviation, banking, datacenters, food, healthcare, industrial and manufacturing, linen and uniform tracking, sports, and travel industries through original equipment and device manufacturers, tag service bureaus, systems integrators, value-added resellers, independent software vendors, and other solution partners. Impinj, Inc. was incorporated in 2000 and is headquartered in Seattle, Washington.