Head-To-Head Review: NeoMagic (OTCMKTS:NMGC) versus Credo Technology Group (NASDAQ:CRDO)

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

Institutional & Insider Ownership

80.5% of Credo Technology Group shares are held by institutional investors. 12.7% of NeoMagic shares are held by company insiders. Comparatively, 23.9% of Credo Technology Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NeoMagic	N/A	N/A	N/A	N/A	N/A
Credo Technology Group	$184.19 million	18.79	-$16.55 million	($0.23)	-92.17

NeoMagic has higher earnings, but lower revenue than Credo Technology Group.

Analyst Ratings

This is a summary of recent ratings for NeoMagic and Credo Technology Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NeoMagic	0	0	0	0	N/A
Credo Technology Group	1	1	6	0	2.63

Credo Technology Group has a consensus price target of $23.00, indicating a potential upside of 8.49%. Given Credo Technology Group’s higher probable upside, analysts clearly believe Credo Technology Group is more favorable than NeoMagic.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NeoMagic	N/A	N/A	N/A
Credo Technology Group	-20.59%	-7.82%	-6.89%

Risk & Volatility

NeoMagic has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500. Comparatively, Credo Technology Group has a beta of 2, meaning that its share price is 100% more volatile than the S&P 500.

Summary

Credo Technology Group beats NeoMagic on 6 of the 9 factors compared between the two stocks.

About NeoMagic

NeoMagic Corporation designs and delivers semiconductors and software solutions for video, television, imaging, graphic, and audio devices. It offers microcontrollers; horizon digital picture frame and digital mobile TV solutions; and SOC processors, such as application processors and Neomobile TV solutions. The company, through its MercadoMagico.com division, operates an e-Commerce platform that allows user to buy and sell products from one another or buy premium electronic products. It sells its applications processors under the MiMagic brand name. The company was founded in 1993 and is based in Milpitas, California.

About Credo Technology Group

Credo Technology Group Holding Ltd provides various high-speed connectivCredo Technology Group Holding Ltd provides various high-speed connectivity solutions for optical and electrical Ethernet applications in the United States, Mexico, 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. 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 headquartered in San Jose, California.ity solutions for optical and electrical Ethernet applications in the United States, Mexico, Mainland China, Hong Kong, and internationally. Its products include integrated circuits, active electrical cables, and SerDes chiplets that are based on its serializer/deserializer and digital signal processor technologies. The company also offers intellectual property solutions consist of SerDes IP licensing. The company was founded in 2008 and is headquartered in San Jose, California.