| Metric | Credo (CRDO) | Astera (ALAB) | Winner |
|---|---|---|---|
| REVENUE (FY2024) | |||
| Total Revenue | $192.1M | $251.8M | Astera |
| YoY Growth | +27.6% | +74.6% | Astera |
| PROFITABILITY | |||
| Gross Margin | 59.8% | 76.7% | Astera |
| Operating Income | -$25.3M (Loss) | +$31.5M (Profit) | Astera |
| Net Income | -$22.8M (Loss) | +$31.1M (Profit) | Astera |
| Non-GAAP Net Income | +$9.4M (Profit) | +$71.3M (Profit) | Astera |
| BALANCE SHEET | |||
| Cash & Investments | $393.2M | $682.1M | Astera |
| Cash from Operations | +$15.3M | +$75.9M | Astera |
| VALUATION | |||
| Market Cap | ~$4.5-5.0B | ~$10.5-11.5B | Astera |
| P/S Ratio | ~25x | ~42x | Credo |
| P/E Ratio | N/A (Unprofitable) | ~340x | N/A |
| KEY RISKS | |||
| Customer Concentration | Top 2 = 65% of revenue | Top 3 = 90% of revenue | Both High Risk |
| R&D Investment | 45% of revenue ($85.9M) | 38% of revenue ($94.9M) | Similar |
Key Takeaways:
Astera Leads In:
- Revenue size and growth rate
- Profitability (already GAAP profitable)
- Gross margins (superior pricing power)
- Cash generation and balance sheet strength
Credo’s Position:
- Lower valuation multiples (P/S ratio)
- Broader market exposure beyond AI servers
- Still showing strong growth
Shared Risks:
- Extreme customer concentration
- High valuation premiums
- Semiconductor cycle exposure
This side-by-side format should be easy to download and read!
Discover more from Priory House
Subscribe to get the latest posts sent to your email.