Quick verdict: CRDO vs HPE in 2026

In this CRDO vs HPE stock comparison 2026, Credo Technology Group Holding Ltd (CRDO) currently holds the overall edge, outperforming Hewlett Packard Enterprise Company (HPE) across several key metrics. CRDO is the undisputed growth and margin leader, showcasing impressive revenue expansion and profitability, while HPE appears to be the value leader based on its significantly lower P/B ratio and superior FCF yield. Analysts overwhelmingly favor CRDO, assigning it a “Buy” consensus with substantial upside, whereas HPE receives a “Hold” rating with a slight downside target. Not investment advice.

CRDO vs HPE: key metrics side by side

Full side-by-side comparison of CRDO and HPE across valuation, profitability, growth and analyst sentiment. Data updated 2026-05-12.

CRDO vs HPE valuation comparison

A direct CRDO vs HPE valuation comparison reveals stark differences reflecting their respective business stages and financial health. Credo Technology Group Holding Ltd (CRDO) trades at a significantly higher valuation with a P/E ratio of 96.62x and a P/B ratio of 17.76x. This indicates that investors are willing to pay a premium for CRDO’s substantial growth and profitability. In contrast, Hewlett Packard Enterprise Company (HPE) presents a more complex valuation picture with a negative P/E ratio of -252.69x, signaling recent losses, but a much lower P/B ratio of 1.59x. For investors seeking traditional “value” metrics, HPE clearly appears cheaper on a book value basis.

The Discounted Cash Flow (DCF) models further illuminate their valuation challenges. CRDO’s DCF suggests a negative value of $-42.83, indicating a potential downside of -123.0% from its current price, which could suggest overvaluation based on future cash flow projections despite its strong recent performance. HPE’s DCF also indicates a negative upside of -39.4%, showing a fair value of $17.92, significantly below its current price of $29.55. When evaluating CRDO vs HPE fundamentals and valuation, HPE’s DCF suggests a less severe undervaluation compared to CRDO’s highly negative DCF, implying that even with its losses, HPE’s future cash flow outlook is slightly less concerning from a valuation perspective, or at least its current price is less detached from its fundamental value than CRDO’s.

CRDO vs HPE growth comparison

In terms of growth, Credo Technology Group Holding Ltd (CRDO) exhibits explosive momentum, making it a clear leader in this CRDO vs HPE stock comparison 2026. CRDO reported trailing twelve-month revenue of $436,775,000, which, while smaller in absolute terms compared to HPE, represents a phenomenal year-over-year growth rate of +126.3%. This triple-digit growth signals a rapidly expanding business, likely capitalizing on emerging technological trends and increasing market demand for its offerings. Such robust revenue growth is a strong indicator of market adoption and competitive strength in its niche.

Hewlett Packard Enterprise Company (HPE), a much larger and more mature enterprise, recorded substantial revenue of $34.30 billion for the trailing twelve months. Its growth rate, though positive, is more modest at +14.1% year-over-year. While respectable for a company of its scale, HPE’s growth pales in comparison to CRDO’s. Investors prioritizing high-growth opportunities would clearly find CRDO more appealing due to its significantly stronger momentum and potential for continued rapid expansion. The vast difference in revenue size suggests CRDO is still in an earlier, high-growth phase, whereas HPE is focused on more measured, sustainable growth within a mature industry, often through incremental gains and market share defense.

CRDO vs HPE profitability

When assessing CRDO vs HPE profitability, Credo Technology Group Holding Ltd (CRDO) stands out with remarkably strong margins, indicating efficient operations and a healthy business model. CRDO’s net margin is an impressive 31.81%, demonstrating its ability to convert a significant portion of its revenue into profit. Its EBITDA margin further reinforces this strength at 32.75%. While Return on Equity (ROE) data is not available for CRDO, these margin figures are indicative of a highly profitable enterprise. The company’s lean debt-to-equity ratio of 0.01x also suggests a financially sound and less leveraged operation.

In contrast, Hewlett Packard Enterprise Company (HPE) faces significant challenges in profitability. HPE reported a negative net margin of -0.44%, indicating that it is currently operating at a loss. Its EBITDA margin is a much lower 5.29%, reflecting thinner operational profitability compared to CRDO. Like CRDO, HPE’s ROE is also not available, preventing a direct comparison on this specific metric. However, a key differentiator emerges in Free Cash Flow (FCF) yield: HPE boasts a robust 9.7% FCF yield, significantly higher than CRDO’s 0.83%. This suggests that despite its negative net income, HPE is effective at generating cash relative to its market capitalization, possibly due to non-cash expenses or efficient working capital management, which is a positive sign for liquidity and potential shareholder returns despite its current losses. This means that while CRDO has superior accounting profits, HPE generates more actual cash for its investors.

Analyst ratings: CRDO vs HPE

Analyst sentiment heavily favors Credo Technology Group Holding Ltd (CRDO) in the CRDO vs HPE stock comparison 2026. CRDO is covered by 13 analysts, with a dominant 84.6% issuing a “Buy” rating. The consensus among these analysts is a strong “Buy,” reflecting high confidence in the company’s future prospects. Furthermore, the average analyst price target for CRDO is $217.1, which represents a substantial +16.7% upside from its current price of $186. This strong endorsement from the analyst community underscores CRDO’s perceived growth potential and attractive risk-reward profile.

Conversely, Hewlett Packard Enterprise Company (HPE) receives a more cautious assessment from analysts. While HPE benefits from broader coverage by 37 analysts, only 40.5% have issued a “Buy” rating. The overall consensus for HPE is “Hold,” suggesting that analysts believe the stock is fairly valued or presents limited immediate upside. The average analyst price target for HPE is $28.71, which indicates a slight downside of -2.8% from its current price of $29.55. This difference in analyst recommendations and price targets clearly indicates that market professionals see more compelling growth opportunities and potential returns in CRDO compared to HPE.

Should I buy CRDO or HPE stock in 2026?

For growth investors looking to capitalize on high-momentum technology plays, Credo Technology Group Holding Ltd (CRDO) presents a compelling case. Its extraordinary revenue growth of +126.3% year-over-year, coupled with impressive net margins of 31.81% and robust analyst sentiment (84.6% buy ratings with a +16.7% target upside), positions it as a strong contender. CRDO’s focus on innovative technology solutions suggests significant future potential, albeit with a premium valuation. If you prioritize rapid expansion and are comfortable with higher P/E ratios in exchange for strong earnings growth, CRDO could be a suitable addition to your portfolio.

When considering CRDO vs HPE fundamentals and valuation, value investors might find Hewlett Packard Enterprise Company (HPE) more appealing, despite its recent losses. HPE’s significantly lower P/B ratio of 1.59x compared to CRDO’s 17.76x suggests it trades at a much more modest valuation relative to its assets. Furthermore, HPE’s robust free cash flow yield of 9.7% (compared to CRDO’s 0.83%) indicates strong cash generation capabilities, a hallmark often sought by value-oriented investors, even with a negative P/E ratio of -252.69x. While its growth is slower and analyst sentiment is more muted, HPE could represent a deep value play for those looking beyond immediate profitability to asset base and cash flow.

For income-focused investors, the choice between these two is straightforward, though modest. Hewlett Packard Enterprise Company (HPE) offers a small dividend yield of 0.02%, providing a minimal income stream, while Credo Technology Group Holding Ltd (CRDO) currently offers no dividend (0% yield). Therefore, if dividend income, however small, is a critical component of your investment strategy, HPE would be the preferred option. However, neither stock would be considered a primary income play. When deciding should I buy CRDO or HPE stock 2026, your investment objectives — growth, value, or income — will be the ultimate determinant. This is not investment advice.

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FAQ: CRDO vs HPE