Allegro MicroSystems (NASDAQ:ALGM) and ams-OSRAM (OTCMKTS:AMSSY) Critical Survey

ams-OSRAM (OTCMKTS:AMSSY) and Allegro MicroSystems (NASDAQ:ALGM) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.

Earnings & Valuation

This table compares ams-OSRAM and Allegro MicroSystems”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ams-OSRAM	$3.71 billion	0.28	-$850.53 million	($0.90)	-5.73
Allegro MicroSystems	$725.01 million	7.99	-$73.01 million	($0.16)	-195.56

Allegro MicroSystems has lower revenue, but higher earnings than ams-OSRAM. Allegro MicroSystems is trading at a lower price-to-earnings ratio than ams-OSRAM, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for ams-OSRAM and Allegro MicroSystems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ams-OSRAM	1	1	0	0	1.50
Allegro MicroSystems	1	2	9	0	2.67

Allegro MicroSystems has a consensus price target of $38.78, indicating a potential upside of 23.93%. Given Allegro MicroSystems’ stronger consensus rating and higher possible upside, analysts clearly believe Allegro MicroSystems is more favorable than ams-OSRAM.

Profitability

This table compares ams-OSRAM and Allegro MicroSystems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ams-OSRAM	-4.86%	2.61%	0.44%
Allegro MicroSystems	-3.60%	2.90%	1.93%

Volatility and Risk

ams-OSRAM has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Allegro MicroSystems has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500.

Insider & Institutional Ownership

56.5% of Allegro MicroSystems shares are owned by institutional investors. 0.4% of Allegro MicroSystems shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Allegro MicroSystems beats ams-OSRAM on 12 of the 14 factors compared between the two stocks.

About ams-OSRAM

ams-OSRAM AG designs, manufactures, and sells LED and optical sensor solutions in Europe, the Middle East, Africa, the Americas, and Asia/Pacific. The company operates in Semiconductors and Lamps & Systems segments. The Semiconductors segment offers semiconductor-based products and solutions, such as high-performance LEDs, lasers, and optical sensors for automotive, consumer, and industrial and medical technology end markets. The Lamps & Systems segment provides lamps and lighting systems for the automotive, industrial, and medical end markets. The company was formerly known as ams AG and changed its name to ams-OSRAM AG in January 2022. ams-OSRAM AG is headquartered in Premstätten, Austria.

About Allegro MicroSystems

Allegro MicroSystems, Inc., together with its subsidiaries, designs, develops, manufactures, and markets sensor integrated circuits (ICs) and application-specific analog power ICs for motion control and energy-efficient systems. Its products include magnetic sensor ICs, such as position, speed, and current sensor ICs; and power ICs comprising motor driver ICs, regulator and LED driver ICs, and isolated gate drivers. The company sells its products to original equipment manufacturers and distributors primarily in the automotive and industrial markets through its direct sales force, third party distributors, independent sales representatives, and consignment. It operates in the United States, rest of the Americas, Europe, Japan, Greater China, South Korea, and other Asian markets. The company was founded in 1990 and is headquartered in Manchester, New Hampshire. Allegro MicroSystems, Inc. is a subsidiary of Sanken Electric Co., Ltd.