Critical Contrast: Alimco Financial (OTCMKTS:ALMC) and Credo Technology Group (NASDAQ:CRDO)

Alimco Financial (OTCMKTS:ALMC) and Credo Technology Group (NASDAQ:CRDO) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, earnings, valuation, institutional ownership, risk, profitability and analyst recommendations.

Institutional & Insider Ownership

0.2% of Alimco Financial shares are held by institutional investors. Comparatively, 80.5% of Credo Technology Group shares are held by institutional investors. 35.1% of Alimco Financial shares are held by company insiders. Comparatively, 16.0% of Credo Technology Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Alimco Financial and Credo Technology Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alimco Financial	N/A	N/A	N/A	N/A	N/A
Credo Technology Group	$192.97 million	41.31	-$28.37 million	($0.16)	-300.00

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alimco Financial	N/A	N/A	N/A
Credo Technology Group	-12.05%	-3.74%	-3.30%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Alimco Financial and Credo Technology Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alimco Financial	0	0	0	0	0.00
Credo Technology Group	1	0	7	1	2.89

Credo Technology Group has a consensus price target of $36.56, suggesting a potential downside of 23.84%. Given Credo Technology Group’s stronger consensus rating and higher possible upside, analysts clearly believe Credo Technology Group is more favorable than Alimco Financial.

Volatility & Risk

Alimco Financial has a beta of 0.1, meaning that its stock price is 90% less volatile than the S&P 500. Comparatively, Credo Technology Group has a beta of 2.19, meaning that its stock price is 119% more volatile than the S&P 500.

Summary

Credo Technology Group beats Alimco Financial on 7 of the 11 factors compared between the two stocks.

About Alimco Financial

Alimco Financial Corporation focuses on business financing solutions. The company was formerly known as Alliance Semiconductor Corporation and changed its name to Alimco Financial Corporation in 2017. Alimco Financial Corporation was founded in 1985 and is based in West Palm Beach, Florida.

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.