Home > Comparison > Technology > MXL vs CRDO
The strategic rivalry between MaxLinear, Inc. and Credo Technology Group Holding Ltd shapes the evolution of the technology sector’s connectivity landscape. MaxLinear operates as a broad semiconductor innovator focused on mixed-signal communication SoCs, while Credo specializes in high-speed communication equipment emphasizing SerDes technologies. This analysis pits MaxLinear’s diversified product base against Credo’s niche expertise to identify which path offers superior risk-adjusted returns for a balanced technology portfolio.
Table of contents
Companies Overview
MaxLinear, Inc. and Credo Technology Group Holding Ltd are key players in the evolving semiconductor and communication equipment markets.
MaxLinear, Inc.: Integrated RF and Mixed-Signal SoC Innovator
MaxLinear dominates the semiconductor sector with integrated high-performance RF and mixed-signal SoCs powering connected homes and infrastructure. Its revenue stems from broadband radio transceiver front ends, Wi-Fi routers, 4G/5G base stations, and fiber-optic modules. In 2026, MaxLinear focuses on expanding its end-to-end communication platform solutions to address multi-market applications with enhanced integration.
Credo Technology Group Holding Ltd: High-Speed Connectivity Specialist
Credo Technology leads in communication equipment by delivering high-speed connectivity solutions for optical and electrical Ethernet applications. Its core revenue comes from integrated circuits, active cables, and SerDes chiplets, underpinned by proprietary serializer/deserializer technology. In 2026, Credo prioritizes intellectual property licensing and advanced SerDes chiplets to strengthen its position in global Ethernet markets.
Strategic Collision: Similarities & Divergences
Both companies emphasize integrated chip solutions but diverge in focus: MaxLinear targets broad mixed-signal communications across diverse markets, while Credo zeroes in on high-speed Ethernet connectivity. Their battleground lies in serving infrastructure demands for faster and more efficient data transmission. MaxLinear offers a broad product ecosystem, whereas Credo’s strength is specialized IP-driven innovation, creating distinct investment profiles within the tech hardware space.
Income Statement Comparison
The following table dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | MaxLinear, Inc. (MXL) | Credo Technology Group Holding Ltd (CRDO) |
|---|---|---|
| Revenue | 468M | 437M |
| Cost of Revenue | 202M | 154M |
| Operating Expenses | 393M | 246M |
| Gross Profit | 266M | 283M |
| EBITDA | -131M | 60M |
| EBIT | -131M | 38M |
| Interest Expense | 10M | 0 |
| Net Income | -137M | 52M |
| EPS | -1.58 | 0.31 |
| Fiscal Year | 2025 | 2025 |
Income Statement Analysis: The Bottom-Line Duel
This income statement comparison reveals how efficiently MaxLinear and Credo Technology convert revenue into profits and manage costs in 2025.
MaxLinear, Inc. Analysis
MaxLinear’s revenue declined sharply from 2021’s 892M to 468M in 2025, dragging net income from a 42M profit in 2021 to a -137M loss in 2025. Despite a solid gross margin near 57%, operating losses and negative net margins around -29% reflect deteriorated profitability. Recent growth in revenue and margins shows early signs of recovery.
Credo Technology Group Holding Ltd Analysis
Credo surged revenue from 59M in 2021 to 437M in 2025, driving net income from a -28M loss to a 52M profit. Its gross margin expanded to 65%, while net margin turned positive at nearly 12%, signaling strong operational efficiency. Exceptional year-over-year growth in revenue, EBIT, and net income highlights robust momentum and margin improvement.
Margin Strength vs. Growth Resilience
Credo clearly outperforms MaxLinear with superior revenue growth and positive net margins in 2025. MaxLinear’s healthy gross margin is overshadowed by persistent operating losses. Credo’s strong margin expansion and profitable growth profile make it the more compelling fundamental winner for investors focused on earnings quality and growth stability.
Financial Ratios Comparison
These vital ratios act as a diagnostic tool to expose the underlying fiscal health, valuation premiums, and capital efficiency of the companies compared below:
| Ratios | MaxLinear, Inc. (MXL) | Credo Technology Group Holding Ltd (CRDO) |
|---|---|---|
| ROE | -47.5% (2024) | 7.7% (2025) |
| ROIC | -24.3% (2024) | 5.0% (2025) |
| P/E | -6.7 (2024) | 138.2 (2025) |
| P/B | 3.20 (2024) | 10.58 (2025) |
| Current Ratio | 1.77 (2024) | 6.62 (2025) |
| Quick Ratio | 1.28 (2024) | 5.79 (2025) |
| D/E | 0.29 (2024) | 0.02 (2025) |
| Debt-to-Assets | 17.2% (2024) | 2.0% (2025) |
| Interest Coverage | -15.5 (2024) | 0 (2025) |
| Asset Turnover | 0.42 (2024) | 0.54 (2025) |
| Fixed Asset Turnover | 4.65 (2024) | 5.54 (2025) |
| Payout ratio | 0% (2024) | 0% (2025) |
| Dividend yield | 0% (2024) | 0% (2025) |
| Fiscal Year | 2024 | 2025 |
Efficiency & Valuation Duel: The Vital Signs
Ratios act as a company’s DNA, revealing hidden risks and operational excellence that shape investor confidence and valuation.
MaxLinear, Inc.
MaxLinear shows deeply negative profitability with a -47.5% ROE and -68% net margin, signaling operational struggles. The P/E ratio is negative, reflecting losses, yet a moderate P/B of 3.2 suggests some asset backing. It pays no dividends, prioritizing heavy R&D investment at 62% of revenue, aiming for future growth despite current inefficiencies.
Credo Technology Group Holding Ltd
Credo posts a positive net margin of 12% but a modest 7.7% ROE, indicating limited profitability. The stock trades at a steep P/E of 138 and a high P/B of 10.6, signaling an expensive valuation. It offers no dividend, reinvesting heavily in R&D (33%) and stock-based compensation to fuel innovation, though liquidity metrics show high current ratio risk.
Premium Valuation vs. Operational Strain
Credo demands a premium price for modest returns, while MaxLinear struggles with losses but invests aggressively in R&D. MaxLinear offers more operational caution; Credo suits investors favoring growth at steep valuations. The choice depends on risk appetite and growth conviction.
Which one offers the Superior Shareholder Reward?
MaxLinear, Inc. (MXL) and Credo Technology Group Holding Ltd (CRDO) both forgo dividends, prioritizing reinvestment and buybacks. MXL’s free cash flow per share turned negative in 2024 (-0.75), signaling weak payout capacity. Its absence of dividends aligns with reinvestment in R&D amid volatile margins. Buyback activity appears minimal recently, undermining shareholder reward. Conversely, CRDO shows positive free cash flow per share (0.17 in 2025) and sustained buybacks fueling total return. CRDO’s higher operating margins (8.7% vs. MXL’s negative 63%) and stronger balance sheet enhance buyback sustainability. I see CRDO’s distribution model as more durable, offering a superior total return profile in 2026.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the fundamental DNA and trade-offs of MaxLinear, Inc. and Credo Technology Group Holding Ltd, highlighting their core financial strengths and vulnerabilities:
MaxLinear exhibits moderate discounted cash flow and price-to-book scores but struggles with low returns on equity and assets. Credo Technology shows strong operational efficiency with high ROE and ROA scores and a solid debt-to-equity position but suffers from very unfavorable valuation metrics. Overall, Credo has a more balanced and robust financial profile, while MaxLinear relies heavily on valuation metrics for its edge.
Bankruptcy Risk: Solvency Showdown
The Altman Z-Score difference shows Credo in a very safe zone, signaling strong long-term survival potential, while MaxLinear remains in the grey zone with moderate bankruptcy risk in this cycle:
Financial Health: Quality of Operations
Credo scores average on the Piotroski F-Score, indicating moderate financial health, whereas MaxLinear’s very weak score raises red flags about its internal operational strength and stability:
How are the two companies positioned?
This section dissects MXL and CRDO’s operational DNA by comparing their revenue distribution and internal strengths and weaknesses. The goal is to confront their economic moats to reveal which model offers the most resilient competitive advantage today.
Revenue Segmentation: The Strategic Mix
The following visual comparison dissects how MaxLinear, Inc. and Credo Technology Group diversify their income streams and where their primary sector bets lie:
MaxLinear anchors its revenue in Broadband ($204M) and Infrastructure ($148M), with notable contributions from Connectivity ($78M) and Industrial markets ($37M), showing moderate diversification. Credo Technology Group pivots heavily on its Product segment ($412M), dwarfing License ($12M) and Product Engineering Services ($12M). MaxLinear’s spread reduces concentration risk, while Credo’s dominance in Product signals high dependency but potential for ecosystem lock-in.
Strengths and Weaknesses Comparison
This table compares the Strengths and Weaknesses of MaxLinear, Inc. and Credo Technology Group Holding Ltd:
MaxLinear Strengths
- Diversified revenue streams across Broadband, Connectivity, Industrial, and Infrastructure segments
- Favorable liquidity ratios with current ratio at 1.77 and quick ratio at 1.28
- Low debt-to-equity of 0.29 and debt-to-assets at 17.23%
- Strong fixed asset turnover at 4.65 indicating efficient use of property and equipment
Credo Technology Strengths
- Positive net margin of 11.95% shows profitability
- Very low debt-to-equity of 0.02 and debt-to-assets at 1.98% reduce financial risk
- Favorable quick ratio at 5.79 and infinite interest coverage suggest strong short-term solvency
- High fixed asset turnover of 5.54 demonstrates excellent asset utilization
MaxLinear Weaknesses
- Negative net margin (-68.01%) and ROE (-47.49%) reflect poor profitability
- ROIC (-24.31%) well below WACC (11.7%) signals value destruction
- Negative interest coverage (-13.01) indicates difficulty covering interest expenses
- High PB ratio of 3.2 may imply overvaluation risk
- Low asset turnover at 0.42 suggests inefficiency
Credo Technology Weaknesses
- High WACC at 16.33% raises capital cost concerns
- ROE at 7.66% is below industry benchmarks indicating moderate returns
- Elevated PE ratio of 138.19 and PB ratio of 10.58 suggest overvaluation
- Current ratio of 6.62 flagged as unfavorable, possibly signaling inefficient asset use
- Dividend yield at 0%, limiting income for investors
MaxLinear’s strengths lie in diversified revenues and solid liquidity despite profitability challenges. Credo shows better profitability and financial safety but faces valuation and capital efficiency concerns. Both companies must address clear weaknesses to enhance shareholder value.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat is the only true shield preserving long-term profits from relentless competitive erosion. Let’s dissect two industry players’ moats:
MaxLinear, Inc. (MXL): Cost Advantage in Integrated Communications SoCs
MaxLinear’s moat stems from cost advantages in RF and mixed-signal SoCs for communications. Despite a 56.8% gross margin, its declining ROIC signals value destruction. New product launches in 2026 may stabilize but not deepen its moat.
Credo Technology Group Holding Ltd (CRDO): Innovation-Driven Network Effects
Credo’s moat relies on advanced SerDes IP and high-speed connectivity solutions, driving network effects in optical and electrical Ethernet markets. Its ROIC is improving, paired with strong revenue growth, suggesting expanding competitive defensibility through innovation in 2026.
Verdict: Cost Efficiency vs. Innovation Momentum
Credo’s innovation-driven moat is deeper and more durable than MaxLinear’s eroding cost advantage. Credo’s rising ROIC and rapid growth better position it to defend and expand market share in 2026.
Which stock offers better returns?
The past year reveals stark differences in price trajectories and trading dynamics between MaxLinear, Inc. and Credo Technology Group Holding Ltd, highlighting contrasting momentum and volume patterns.
Trend Comparison
MaxLinear, Inc. shows a bearish trend over the past 12 months with a -17.26% price decline and accelerating downward momentum. The stock’s range spans from a high of 24.05 to a low of 9.31, reflecting elevated volatility (3.37 std deviation).
Credo Technology Group Holding Ltd exhibits a strong bullish trend with a 463.82% price increase over the last year, though recent months show decelerating gains and a -13.91% retracement. Volatility remains high at 48.95 std deviation.
Comparing both, Credo Technology Group Holding Ltd clearly outperforms MaxLinear, delivering the highest market returns despite recent short-term weakness.
Target Prices
Analysts present a bullish consensus for MaxLinear, Inc. and Credo Technology Group Holding Ltd.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| MaxLinear, Inc. | 15 | 25 | 21 |
| Credo Technology Group | 160 | 260 | 222.5 |
MaxLinear’s consensus target at 21 exceeds its current price of 17.35, signaling potential upside. Credo’s target consensus at 222.5 is well above its 125.28 price, indicating strong analyst optimism.
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How do institutions grade them?
MaxLinear, Inc. Grades
The table below summarizes recent grades for MaxLinear, Inc. from established grading firms.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Wells Fargo | Maintain | Equal Weight | 2026-01-30 |
| Benchmark | Maintain | Buy | 2026-01-16 |
| Benchmark | Maintain | Buy | 2025-10-24 |
| Benchmark | Maintain | Buy | 2025-10-17 |
| Benchmark | Maintain | Buy | 2025-09-02 |
| Loop Capital | Maintain | Hold | 2025-08-04 |
| Wells Fargo | Maintain | Equal Weight | 2025-07-24 |
| Benchmark | Maintain | Buy | 2025-07-24 |
| Susquehanna | Maintain | Neutral | 2025-07-24 |
| Susquehanna | Maintain | Neutral | 2025-07-22 |
Credo Technology Group Holding Ltd Grades
Below are recent institutional grades for Credo Technology Group Holding Ltd from recognized firms.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Needham | Maintain | Buy | 2025-12-02 |
| B of A Securities | Maintain | Buy | 2025-12-02 |
| Barclays | Maintain | Overweight | 2025-12-02 |
| Mizuho | Maintain | Outperform | 2025-12-02 |
| Roth Capital | Maintain | Buy | 2025-12-02 |
| Susquehanna | Maintain | Positive | 2025-10-22 |
| Barclays | Maintain | Overweight | 2025-10-07 |
| Susquehanna | Maintain | Positive | 2025-09-04 |
| Roth Capital | Maintain | Buy | 2025-09-04 |
| Barclays | Maintain | Overweight | 2025-09-04 |
Which company has the best grades?
Credo Technology Group receives consistently higher grades such as Buy, Overweight, and Outperform. MaxLinear’s grades center around Buy, Hold, and Equal Weight. This suggests Credo may be viewed more favorably by analysts, potentially impacting investor confidence.
Risks specific to each company
The following categories identify critical pressure points and systemic threats facing MaxLinear, Inc. (MXL) and Credo Technology Group Holding Ltd (CRDO) in the 2026 market environment:
1. Market & Competition
MaxLinear, Inc.
- Faces intense semiconductor competition with margin pressures and a shrinking net margin of -68%.
Credo Technology Group Holding Ltd
- Operates in high-speed connectivity with stronger net margin (12%) but high valuation risks.
2. Capital Structure & Debt
MaxLinear, Inc.
- Maintains moderate debt-to-equity (0.29) and manageable debt-to-assets (17%), but weak interest coverage (-13).
Credo Technology Group Holding Ltd
- Exhibits minimal leverage (debt-to-equity 0.02) and excellent interest coverage, indicating solid financial stability.
3. Stock Volatility
MaxLinear, Inc.
- Beta of 1.77 suggests above-market volatility, with recent -10% price drop indicating investor caution.
Credo Technology Group Holding Ltd
- Higher beta at 2.66 with a wider trading range, reflecting greater stock price swings and market sensitivity.
4. Regulatory & Legal
MaxLinear, Inc.
- Exposure to U.S. and global semiconductor regulations could impact product approvals and supply chain.
Credo Technology Group Holding Ltd
- Faces complex regulations across U.S., China, and Mexico, increasing compliance and geopolitical legal risks.
5. Supply Chain & Operations
MaxLinear, Inc.
- Supply chain risks from global semiconductor shortages and reliance on third-party distributors.
Credo Technology Group Holding Ltd
- Operational risks due to international manufacturing footprint, but benefits from focused product specialization.
6. ESG & Climate Transition
MaxLinear, Inc.
- Limited disclosure on ESG initiatives; potential risks in energy-intensive manufacturing sectors.
Credo Technology Group Holding Ltd
- Emerging ESG commitments, but must address environmental impact of high-speed connectivity devices.
7. Geopolitical Exposure
MaxLinear, Inc.
- Primarily U.S.-based but vulnerable to global trade tensions affecting semiconductor exports.
Credo Technology Group Holding Ltd
- Significant exposure in China and Mexico increases geopolitical risks amid escalating tech trade disputes.
Which company shows a better risk-adjusted profile?
MaxLinear’s largest risk is its severe profitability erosion and negative return metrics, while Credo’s key risk arises from elevated stock volatility and geopolitical complexity. Despite Credo’s high valuation, its clean balance sheet and stronger financial scores signal a better risk-adjusted profile. Recent data highlights MaxLinear’s distress zone Altman Z-score and very weak Piotroski score, raising bankruptcy concerns, whereas Credo remains in the safe zone with moderate operational risks. I conclude Credo offers a more resilient investment stance amid 2026 market headwinds.
Final Verdict: Which stock to choose?
MaxLinear, Inc. (MXL) stands out with its robust operational efficiency and resilient cash flow generation despite recent profitability challenges. Its point of vigilance is the ongoing value destruction indicated by a declining ROIC versus WACC. MXL fits well within aggressive growth portfolios willing to weather volatility for a turnaround.
Credo Technology Group Holding Ltd (CRDO) commands a strategic moat through its strong balance sheet and robust revenue growth, supported by a healthy gross margin and expanding profitability. It offers better financial stability compared to MXL, making it suitable for investors seeking GARP—growth at a reasonable price—with a tolerance for elevated valuation multiples.
If you prioritize turnaround potential and operational leverage, MaxLinear might be the compelling choice due to its improving income statement trends despite current value erosion. However, if you seek more stability and a clearer growth trajectory, Credo offers better risk-adjusted growth prospects, though it commands a premium valuation and less margin for error.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of MaxLinear, Inc. and Credo Technology Group Holding Ltd to enhance your investment decisions:
