Financial Survey: Cree (NASDAQ:CREE) versus The Competition

Cree (NASDAQ: CREE) is one of 104 publicly-traded companies in the “Semiconductors” industry, but how does it contrast to its competitors? We will compare Cree to related companies based on the strength of its profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Profitability

This table compares Cree and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cree -8.42% -0.44% -0.37%
Cree Competitors -46.20% 1.37% 0.75%

Risk and Volatility

Cree has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, Cree’s competitors have a beta of 1.07, meaning that their average stock price is 7% more volatile than the S&P 500.

Institutional and Insider Ownership

91.2% of Cree shares are held by institutional investors. Comparatively, 65.3% of shares of all “Semiconductors” companies are held by institutional investors. 1.1% of Cree shares are held by insiders. Comparatively, 6.7% of shares of all “Semiconductors” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for Cree and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cree 4 8 2 0 1.86
Cree Competitors 913 4762 8646 359 2.58

Cree currently has a consensus price target of $26.21, indicating a potential downside of 20.15%. As a group, “Semiconductors” companies have a potential upside of 9.63%. Given Cree’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Cree has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares Cree and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Cree $1.46 billion $96.06 million -26.90
Cree Competitors $4.29 billion $1.35 billion 24.41

Cree’s competitors have higher revenue and earnings than Cree. Cree is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Cree competitors beat Cree on 10 of the 12 factors compared.

About Cree

Cree, Inc. is a manufacturer of lighting-class light emitting diode (LED) products, lighting products and semiconductor products for power and radio-frequency (RF) applications. The Company’s products are focused for applications, such as indoor and outdoor lighting, video displays, transportation, electronic signs and signals, power supplies, inverters and wireless systems. The Company has three segments: Lighting Products, LED Products, and Power and RF Products. The Company’s Lighting Products segment offers LED lighting systems and bulbs. The Company’s LED Products segment offers LED components, LED chips and silicon carbide (SiC) materials. The Company’s Power and RF Products segment offers power devices and RF devices. The Company designs, manufactures and markets lighting systems for indoor and outdoor applications, with a focus on LED lighting systems for the commercial, industrial and consumer markets.

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