Cree (CREE) versus Its Peers Financial Review

Cree (NASDAQ: CREE) is one of 105 publicly-traded companies in the “Semiconductors” industry, but how does it contrast to its rivals? We will compare Cree to similar businesses based on the strength of its dividends, analyst recommendations, valuation, profitability, risk, earnings and institutional ownership.

Analyst Ratings

This is a summary of current recommendations and price targets for Cree and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cree 3 9 2 0 1.93
Cree Competitors 912 4748 8681 364 2.58

Cree currently has a consensus price target of $25.88, indicating a potential downside of 24.25%. As a group, “Semiconductors” companies have a potential upside of 9.25%. Given Cree’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Cree has less favorable growth aspects than its rivals.

Profitability

This table compares Cree and its rivals’ 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 -45.84% 1.42% 0.78%

Institutional and Insider Ownership

91.2% of Cree shares are held by institutional investors. Comparatively, 65.7% of shares of all “Semiconductors” companies are held by institutional investors. 1.1% of Cree shares are held by insiders. Comparatively, 6.6% of shares of all “Semiconductors” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Cree and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Cree $1.47 billion $101.00 million -28.00
Cree Competitors $4.62 billion $1.36 billion 80.34

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

Risk & Volatility

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

Summary

Cree rivals 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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