Comparing Viavi Solutions (NASDAQ:VIAV) & Credo Technology Group (NASDAQ:CRDO)

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

Valuation and Earnings

This table compares Credo Technology Group and Viavi Solutions”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Credo Technology Group	$192.97 million	62.19	-$28.37 million	($0.15)	-478.40
Viavi Solutions	$1.00 billion	2.70	-$25.80 million	($0.18)	-67.50

Viavi Solutions has higher revenue and earnings than Credo Technology Group. Credo Technology Group is trading at a lower price-to-earnings ratio than Viavi Solutions, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

80.5% of Credo Technology Group shares are held by institutional investors. Comparatively, 95.5% of Viavi Solutions shares are held by institutional investors. 16.0% of Credo Technology Group shares are held by insiders. Comparatively, 1.5% of Viavi Solutions shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Credo Technology Group	-9.70%	-2.94%	-2.60%
Viavi Solutions	-3.87%	2.90%	1.16%

Analyst Recommendations

This is a summary of recent ratings and target prices for Credo Technology Group and Viavi Solutions, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Credo Technology Group	0	1	9	0	2.90
Viavi Solutions	1	4	4	0	2.33

Credo Technology Group presently has a consensus target price of $76.40, suggesting a potential upside of 6.47%. Viavi Solutions has a consensus target price of $12.33, suggesting a potential upside of 1.51%. Given Credo Technology Group’s stronger consensus rating and higher possible upside, analysts clearly believe Credo Technology Group is more favorable than Viavi Solutions.

Risk and Volatility

Credo Technology Group has a beta of 2.09, meaning that its share price is 109% more volatile than the S&P 500. Comparatively, Viavi Solutions has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.

Summary

Credo Technology Group beats Viavi Solutions on 7 of the 13 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 Viavi Solutions

Viavi Solutions, Inc. engages in the provision of network test, monitoring, and assurance solutions for communications service providers, enterprises, network equipment manufacturers, government and avionics. It operates through the following segments: Network Enablement, Service Enablement, and Optical Security and Performance. The Network Enablement segment offers an integrated portfolio of testing solutions that access the network to perform build-out and maintenance tasks. The Service Enablement segment covers solutions and services primarily for communication service providers, and enterprises that deliver and/or operate broadband and IP networks (fixed and mobile) supporting voice, video, and data services as well as a wide range of applications. The Optical Security and Performance segment leverages its core optical coating technologies and volume manufacturing capability to design, manufacture, and sell products targeting anti-counterfeiting, consumer and industrial, government, healthcare, and other markets. The company was founded in 1979 and is headquartered in Chandler, AZ.