In the ever-evolving landscape of technology, the competition between MaxLinear, Inc. (MXL) and Credo Technology Group Holding Ltd (CRDO) presents an intriguing case study for investors. Both companies operate within the semiconductor and communication equipment sectors, focusing on high-performance connectivity solutions. Their innovative strategies and overlapping markets make them compelling subjects for comparison. As we delve into their strengths and potential risks, I’ll help you determine which company could be the most interesting addition to your investment portfolio.
Table of contents
Company Overview
MaxLinear, Inc. Overview
MaxLinear, Inc. (MXL) specializes in developing advanced semiconductor solutions that integrate radiofrequency (RF), high-performance analog, and mixed-signal technologies. Founded in 2003 and headquartered in Carlsbad, California, the company caters to a diverse range of applications, including connected home devices, wired and wireless infrastructure, and industrial sectors. MaxLinear’s products are pivotal in enhancing communication systems, offering a variety of solutions such as broadband transceivers, data converters, and networking architectures. With a market capitalization of approximately $1.62B, MaxLinear is well-positioned within the semiconductor industry, demonstrating a commitment to innovation and high-performance solutions.
Credo Technology Group Holding Ltd Overview
Credo Technology Group Holding Ltd (CRDO) delivers high-speed connectivity solutions, focusing on optical and electrical Ethernet applications. Established in 2008 and based in San Jose, California, the firm has carved a niche in providing integrated circuits, active electrical cables, and advanced SerDes technologies. With a market capitalization of around $30.35B, Credo is a key player in the communication equipment sector, offering products that support the growing demands of data transmission and connectivity. Their innovative approach includes intellectual property solutions, making them a versatile provider in the technology landscape.
Key similarities and differences
Both MaxLinear and Credo operate within the technology sector, focusing on semiconductor solutions, yet their markets differ. MaxLinear emphasizes RF and mixed-signal communications for various applications, while Credo specializes in high-speed connectivity solutions for Ethernet. While both companies are positioned for growth amidst increasing demand for connectivity, their product offerings and target applications highlight distinct operational focuses.
Income Statement Comparison
The following table compares the most recent income statements of MaxLinear, Inc. (MXL) and Credo Technology Group Holding Ltd (CRDO), highlighting key financial metrics for the fiscal year.
| Metric | MaxLinear, Inc. (MXL) | Credo Technology Group (CRDO) |
|---|---|---|
| Market Cap | 1.62B | 30.35B |
| Revenue | 360.53M | 436.78M |
| EBITDA | -181.69M | 59.94M |
| EBIT | -227.84M | 37.99M |
| Net Income | -245.20M | 52.18M |
| EPS | -2.93 | 0.31 |
| Fiscal Year | 2024 | 2025 |
Interpretation of Income Statement
In the most recent fiscal year, MaxLinear experienced a significant decline in revenue and incurred a net loss of 245.20M, reflecting challenges in its operations. Conversely, Credo Technology showed a healthy revenue growth to 436.78M and achieved a net income of 52.18M, indicating strong performance. While MaxLinear’s margins deteriorated, Credo’s EBITDA margin improved, suggesting effective cost management. Overall, MaxLinear’s struggles versus Credo’s growth present contrasting investment narratives, warranting caution for potential investors in MXL.
Financial Ratios Comparison
Below is a comparative table showing the most recent financial ratios for MaxLinear, Inc. (MXL) and Credo Technology Group Holding Ltd (CRDO).
| Metric | MXL | CRDO |
|---|---|---|
| ROE | -47.49% | 7.66% |
| ROIC | -24.97% | 5.01% |
| P/E | -6.74 | 138.19 |
| P/B | 3.20 | 10.58 |
| Current Ratio | 1.77 | 6.62 |
| Quick Ratio | 1.28 | 5.79 |
| D/E | 0.29 | 0.03 |
| Debt-to-Assets | 17.23% | 1.98% |
| Interest Coverage | -15.52 | 0 |
| Asset Turnover | 0.42 | 0.54 |
| Fixed Asset Turnover | 4.65 | 5.54 |
| Payout ratio | 0% | 0% |
| Dividend yield | 0% | 0% |
Interpretation of Financial Ratios
The financial ratios reveal stark contrasts between MXL and CRDO. MXL’s negative ROE and ROIC indicate significant operational challenges, suggesting an unstable return on equity and capital. In contrast, CRDO’s positive ratios, particularly a high current and quick ratio, underscore strong liquidity and financial health. However, CRDO’s high P/E ratio raises caution about valuation, while MXL’s negative metrics highlight potential risks for investors. Hence, I would approach MXL with caution, focusing on CRDO for a more stable investment opportunity.
Dividend and Shareholder Returns
MaxLinear, Inc. (MXL) does not pay dividends, reflecting a negative net income and a focus on reinvestment strategies for growth. The lack of dividends is typical in high-growth phases where companies prioritize R&D and acquisitions to create long-term shareholder value. In contrast, Credo Technology Group (CRDO) also refrains from dividend payments, emphasizing reinvestment over distributions. Both companies, however, engage in share buybacks, indicating a commitment to returning value to shareholders. Overall, the absence of dividends in favor of growth strategies suggests a potential for sustainable long-term value creation.
Strategic Positioning
In the semiconductor and communication equipment sectors, MaxLinear, Inc. (MXL) holds a market cap of $1.62B, focusing on high-performance analog solutions for diverse applications. Meanwhile, Credo Technology Group (CRDO), with a market cap of $30.35B, specializes in high-speed connectivity solutions and has a competitive edge in the optical Ethernet market. Both companies face significant technological disruptions and competitive pressures, compelling them to innovate continuously to maintain their market shares.
Stock Comparison
Over the past year, the stock prices of MaxLinear, Inc. (MXL) and Credo Technology Group Holding Ltd (CRDO) have exhibited distinct price movements and trading dynamics, reflecting differing market sentiments and performance metrics.
Trend Analysis
MaxLinear, Inc. (MXL) The overall percentage change for MXL over the past year stands at -12.49%, indicating a bearish trend. The stock has experienced notable price fluctuations with a highest price of 24.05 and a lowest price of 9.31. The trend shows acceleration, with a standard deviation of 3.52, suggesting increased volatility in its price movements.
In the recent analysis period (from September 21, 2025, to December 7, 2025), MXL reported a price increase of 14.85%, although the trend slope is slightly negative at -0.03. This suggests a potential deceleration in upward momentum despite the recent gain.
Credo Technology Group Holding Ltd (CRDO) In stark contrast, CRDO has demonstrated a remarkable overall percentage change of 837.88% over the past year, confirming a bullish trend. The stock’s movement has been characterized by strong acceleration, with a highest price reached at 187.62 and a lowest at 16.92. The standard deviation of 46.07 indicates significant volatility, which is typical for a stock exhibiting such high growth.
In the recent period (from September 21, 2025, to December 7, 2025), CRDO has shown a price change of 4.54%, accompanied by a trend slope of 1.57, reflecting a consistent upward trajectory. The recent buyer behavior indicates a neutral stance, with a buyer dominance percentage of 47.94%.
In summary, while MXL faces a bearish trend with notable risks, CRDO represents a robust investment opportunity with significant upward momentum.
Analyst Opinions
Recent analyst recommendations show a mixed outlook for MaxLinear, Inc. (MXL) and Credo Technology Group Holding Ltd (CRDO). MXL received a “C” rating from analysts, indicating caution due to low scores in return on equity and return on assets. Conversely, CRDO garnered a “B” rating, praised for its strong return on assets and equity. Notably, analysts recommend holding MXL while suggesting a buy for CRDO. The consensus for 2025 leans towards a buy for CRDO and a hold for MXL, reflecting varying levels of investor confidence.
Stock Grades
In the current market landscape, it’s essential to evaluate stock ratings from reputable grading companies to make informed investment decisions. Below are the grades for MaxLinear, Inc. and Credo Technology Group Holding Ltd.
MaxLinear, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| 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 |
| Susquehanna | Maintain | Neutral | 2025-07-24 |
| Benchmark | Maintain | Buy | 2025-07-24 |
| Susquehanna | Maintain | Neutral | 2025-07-22 |
| Stifel | Maintain | Buy | 2025-07-18 |
| Wells Fargo | Maintain | Equal Weight | 2025-07-16 |
Credo Technology Group Holding Ltd Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| B of A Securities | Maintain | Buy | 2025-12-02 |
| Needham | Maintain | Buy | 2025-12-02 |
| Mizuho | Maintain | Outperform | 2025-12-02 |
| Roth Capital | Maintain | Buy | 2025-12-02 |
| Barclays | Maintain | Overweight | 2025-12-02 |
| Susquehanna | Maintain | Positive | 2025-10-22 |
| Barclays | Maintain | Overweight | 2025-10-07 |
| Barclays | Maintain | Overweight | 2025-09-04 |
| TD Cowen | Maintain | Buy | 2025-09-04 |
| Needham | Maintain | Buy | 2025-09-04 |
Overall, both MaxLinear, Inc. and Credo Technology Group Holding Ltd show strong support from reputable grading companies, with a consistent trend of “Buy” and “Overweight” ratings indicating positive sentiment for these stocks.
Target Prices
MaxLinear, Inc. (MXL) and Credo Technology Group Holding Ltd (CRDO) have reliable target price data available, indicating a consensus among analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| MaxLinear, Inc. | 25 | 13 | 19 |
| Credo Technology Group Holding Ltd | 250 | 160 | 217.5 |
For MaxLinear, the current price of $18.58 is slightly below the consensus target of $19, suggesting a modest upside potential. In contrast, Credo’s stock price at $177.02 is well below the consensus of $217.5, indicating significant growth expectations from analysts.
Strengths and Weaknesses
The table below outlines the strengths and weaknesses of MaxLinear, Inc. (MXL) and Credo Technology Group Holding Ltd (CRDO) based on the most recent data.
| Criterion | MaxLinear, Inc. (MXL) | Credo Technology Group Holding Ltd (CRDO) |
|---|---|---|
| Diversification | Moderate | High |
| Profitability | Negative margins | Positive margins |
| Innovation | Strong | Strong |
| Global presence | Moderate | Strong |
| Market Share | Moderate | Growing |
| Debt level | Low | Very low |
Key takeaways reveal that while both companies show strong potential in innovation, Credo leads in profitability and global presence, which may make it a more attractive option for investors seeking stability and growth. Conversely, MaxLinear’s low debt level might appeal to risk-averse investors.
Risk Analysis
The following table outlines various risks associated with MaxLinear, Inc. (MXL) and Credo Technology Group Holding Ltd (CRDO) for the most recent year.
| Metric | MaxLinear, Inc. (MXL) | Credo Technology Group Holding Ltd (CRDO) |
|---|---|---|
| Market Risk | High | Moderate |
| Regulatory Risk | Moderate | Low |
| Operational Risk | High | Moderate |
| Environmental Risk | Low | Low |
| Geopolitical Risk | Moderate | Low |
In assessing these companies, the most significant risks for MXL stem from high market and operational risks, driven by a volatile semiconductor sector and supply chain challenges. Meanwhile, CRDO exhibits lower regulatory and geopolitical risks, though it faces moderate operational challenges.
Which one to choose?
When comparing MaxLinear, Inc. (MXL) and Credo Technology Group Holding Ltd (CRDO), the latter appears to present a more favorable outlook for investors. CRDO boasts a strong gross profit margin of 64.77% and a net profit margin of 11.95%, reflecting solid profitability metrics. In contrast, MXL shows a declining trend with a net profit margin of -68.01%, indicating significant losses.
From a valuation perspective, MXL has a price-to-earnings (P/E) ratio of -6.74, reflecting its negative earnings, while CRDO’s P/E ratio is 138.19, suggesting investor optimism despite recent losses. Analysts rate CRDO a “B” compared to MXL’s “C,” with price targets indicating potential for growth.
Investors focused on growth may prefer CRDO due to its bullish stock trend and improving margins, while those prioritizing stability may find MXL’s situation concerning given its ongoing losses and bearish trend.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of MaxLinear, Inc. and Credo Technology Group Holding Ltd to enhance your investment decisions:
