Head to Head Contrast: ams-OSRAM (OTCMKTS:AUKUF) & Allegro MicroSystems (NASDAQ:ALGM)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Allegro MicroSystems	7.91%	13.88%	10.65%
ams-OSRAM	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and price targets for Allegro MicroSystems and ams-OSRAM, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allegro MicroSystems	0	0	8	0	3.00
ams-OSRAM	0	0	0	0	N/A

Allegro MicroSystems currently has a consensus target price of $34.50, suggesting a potential upside of 66.10%. Given Allegro MicroSystems’ higher possible upside, equities research analysts plainly believe Allegro MicroSystems is more favorable than ams-OSRAM.

Institutional and Insider Ownership

56.5% of Allegro MicroSystems shares are owned by institutional investors. Comparatively, 38.1% of ams-OSRAM shares are owned by institutional investors. 0.5% of Allegro MicroSystems shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allegro MicroSystems	$937.99 million	4.27	$152.70 million	$0.78	26.53
ams-OSRAM	N/A	N/A	N/A	$1.30	7.50

Allegro MicroSystems has higher revenue and earnings than ams-OSRAM. ams-OSRAM 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 ams-OSRAM on 9 of the 10 factors compared between the two stocks.

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.

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 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 was founded in 1981 and is headquartered in Premstätten, Austria.