Contrasting Cree (CREE) and Its Rivals

Cree (NASDAQ: CREE) is one of 100 publicly-traded companies in the “Semiconductors” industry, but how does it contrast to its peers? We will compare Cree to related businesses based on the strength of its risk, analyst recommendations, dividends, earnings, valuation, profitability and institutional ownership.

Valuation and Earnings

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

Gross Revenue NetIncome Price/Earnings Ratio
Cree $1.47 billion -$98.11 million -28.34
Cree Competitors $4.14 billion $396.24 million 55.15

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

Profitability

This table compares Cree and its peers’ 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 -39.61% 0.62% 0.75%

Analyst Ratings

This is a breakdown of recent recommendations for Cree and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cree 4 7 3 0 1.93
Cree Competitors 885 4577 8405 345 2.58

Cree presently has a consensus target price of $28.13, suggesting a potential downside of 18.64%. As a group, “Semiconductors” companies have a potential upside of 8.03%. Given Cree’s peers stronger consensus rating and higher possible upside, analysts plainly believe Cree has less favorable growth aspects than its peers.

Insider & Institutional Ownership

91.7% of Cree shares are held by institutional investors. Comparatively, 66.3% of shares of all “Semiconductors” companies are held by institutional investors. 1.1% of Cree shares are held by company insiders. Comparatively, 6.8% of shares of all “Semiconductors” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Cree has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, Cree’s peers have a beta of 1.01, meaning that their average stock price is 1% more volatile than the S&P 500.

Summary

Cree peers beat Cree on 9 of the 12 factors compared.

Cree Company Profile

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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