Allegro MicroSystems (NASDAQ:ALGM – Get Free Report) and Rohm (OTCMKTS:ROHCY – Get Free Report) are both mid-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.
Profitability
This table compares Allegro MicroSystems and Rohm’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Allegro MicroSystems | -9.00% | 2.09% | 1.36% |
| Rohm | -11.07% | -2.52% | -1.57% |
Analyst Recommendations
This is a breakdown of current ratings and target prices for Allegro MicroSystems and Rohm, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Allegro MicroSystems | 1 | 2 | 8 | 0 | 2.64 |
| Rohm | 0 | 2 | 0 | 0 | 2.00 |
Institutional & Insider Ownership
56.5% of Allegro MicroSystems shares are held by institutional investors. 0.4% of Allegro MicroSystems shares are held 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.
Earnings & Valuation
This table compares Allegro MicroSystems and Rohm”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Allegro MicroSystems | $725.01 million | 7.05 | -$73.01 million | ($0.37) | -74.62 |
| Rohm | $2.95 billion | 2.03 | -$330.42 million | ($0.85) | -17.45 |
Allegro MicroSystems has higher earnings, but lower revenue than Rohm. Allegro MicroSystems is trading at a lower price-to-earnings ratio than Rohm, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Allegro MicroSystems has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500. Comparatively, Rohm has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500.
Summary
Allegro MicroSystems beats Rohm on 12 of the 14 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 Rohm
ROHM Co., Ltd. manufactures and sells electronic components worldwide. The company operates through three segments: LSI, Semiconductor Devices, and Modules. It provides ICs comprising memory, amplifiers and linear, power management, motor/actuator drivers, resistors, clocks and timers, switches and multiplexers, logic, data converters, sensors and MEMS, display drivers, interfaces, wireless LSIs, audio and video products, speech synthesis LSI, and microcontrollers. The company also offers discrete semiconductor products, such as MOSFETs, bipolar transistors, and diodes; power devices, including power transistors and diodes, SiC power devices, IGBT, and IPM; modules, including optical modules, wireless communication modules, wireless charger modules, and print heads; and opto devices comprising LEDs, LED displays, laser diodes, and optical sensors, as well as foundry services, including thin-film piezoelectric MEMS, wafers, and WL-CSP. Its products are used in industry, automotive, consumer electronics, and telecommunications applications. The company was incorporated in 1940 and is headquartered in Kyoto, Japan.
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