Amtech Systems (NASDAQ:ASYS – Get Free Report) and Allegro MicroSystems (NASDAQ:ALGM – Get Free Report) are both technology companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, profitability, institutional ownership and earnings.
Insider and Institutional Ownership
50.2% of Amtech Systems shares are owned by institutional investors. Comparatively, 56.5% of Allegro MicroSystems shares are owned by institutional investors. 26.9% of Amtech Systems shares are owned by company insiders. Comparatively, 0.5% of Allegro MicroSystems shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings for Amtech Systems and Allegro MicroSystems, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Amtech Systems | 0 | 3 | 1 | 0 | 2.25 |
| Allegro MicroSystems | 1 | 1 | 9 | 1 | 2.83 |
Volatility and Risk
Amtech Systems has a beta of 2.01, meaning that its share price is 101% more volatile than the S&P 500. Comparatively, Allegro MicroSystems has a beta of 1.91, meaning that its share price is 91% more volatile than the S&P 500.
Profitability
This table compares Amtech Systems and Allegro MicroSystems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Amtech Systems | 4.90% | 6.33% | 4.00% |
| Allegro MicroSystems | 1.50% | 8.30% | 5.65% |
Earnings & Valuation
This table compares Amtech Systems and Allegro MicroSystems”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Amtech Systems | $79.36 million | 3.50 | -$30.33 million | $0.26 | 60.96 |
| Allegro MicroSystems | $890.10 million | 7.74 | -$14.90 million | $0.06 | 615.67 |
Allegro MicroSystems has higher revenue and earnings than Amtech Systems. Amtech Systems is trading at a lower price-to-earnings ratio than Allegro MicroSystems, indicating that it is currently the more affordable of the two stocks.
Summary
Allegro MicroSystems beats Amtech Systems on 11 of the 15 factors compared between the two stocks.
About Amtech Systems
Amtech Systems, Inc. manufactures and sells capital equipment and related consumables for use in fabricating silicon carbide (SiC), silicon power devices, analog and discrete devices, electronic assemblies, and light-emitting diodes (LEDs) worldwide. The company operates through Semiconductor and Material and Substrate segments. The Semiconductor segment designs, manufactures, sells, and services thermal processing equipment, including solder reflow ovens, horizontal diffusion furnaces, and custom high-temp belt furnaces for use by semiconductor, electronics, and electro/mechanical assembly manufacturers; and diffusion and reflow thermal systems, as well as wafer cleaning equipment and related services. The Material and Substrate segment manufactures and sells consumables and machinery for lapping and polishing of materials, such as silicon wafers for semiconductor products; sapphire substrates for LED lighting and mobile devices; silicon carbide wafers for LED and power device applications; various glass and silica components for 3D image transmission; quartz and ceramic components for telecommunications devices; and medical device components, and optical and photonics applications. It also offers substrate products comprising of double-sided wafer cleaning system, entegrity head tester, substrate carrier, substrate polishing templates, double-sided lapping and polishing machines, single-sided polisher, and substrate process chemicals. The company sells its products through sales personnel, as well as a network of independent sales representatives and distributors. Amtech Systems, Inc. was incorporated in 1981 and is headquartered in Tempe, Arizona.
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.
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