Contrasting Allegro MicroSystems (NASDAQ:ALGM) & Atomera (NASDAQ:ATOM)

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

Risk & Volatility

Allegro MicroSystems has a beta of 1.78, suggesting that its stock price is 78% more volatile than the S&P 500. Comparatively, Atomera has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500.

Earnings & Valuation

This table compares Allegro MicroSystems and Atomera’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allegro MicroSystems	$768.67 million	10.34	$119.41 million	$0.77	53.97
Atomera	$400,000.00	491.31	-$15.71 million	($0.76)	-10.84

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

Analyst Ratings

This is a summary of current ratings for Allegro MicroSystems and Atomera, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allegro MicroSystems	0	0	6	0	3.00
Atomera	0	0	0	0	N/A

Allegro MicroSystems currently has a consensus price target of $41.83, suggesting a potential upside of 0.66%. Atomera has a consensus price target of $13.00, suggesting a potential upside of 57.77%. Given Atomera’s higher possible upside, analysts clearly believe Atomera is more favorable than Allegro MicroSystems.

Profitability

This table compares Allegro MicroSystems and Atomera’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allegro MicroSystems	16.69%	20.32%	16.81%
Atomera	N/A	-70.75%	-54.82%

Institutional and Insider Ownership

46.9% of Allegro MicroSystems shares are held by institutional investors. Comparatively, 31.3% of Atomera shares are held by institutional investors. 13.6% of Allegro MicroSystems shares are held by company insiders. Comparatively, 12.6% of Atomera shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Allegro MicroSystems beats Atomera on 11 of the 13 factors compared between the two stocks.

About Allegro MicroSystems

(Get Rating)

Allegro MicroSystems, Inc. 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; power ICs comprising motor driver ICs, and regulator and LED driver ICs; and photonic and 3D sensing components, including photodiodes, eye-safe lasers, and readout ICs for LiDAR applications. The company sells its products to original equipment manufacturers and suppliers 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.

About Atomera

(Get Rating)

Atomera, Inc. engages in the development, commercializing, and licensing of proprietary processes and technologies for the semiconductor industry. It developed Mears Silicon Technology, which increases performance and power efficiency in semiconductor transistors. The company was founded by Robert Mears in November 26, 2001 and is headquartered in Los Gatos, CA.