Head to Head Contrast: Wolfspeed (NYSE:WOLF) and Alimco Financial (OTCMKTS:ALMC)

Alimco Financial (OTCMKTS:ALMC) and Wolfspeed (NYSE:WOLF) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Valuation and Earnings

This table compares Alimco Financial and Wolfspeed”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alimco Financial	N/A	N/A	N/A	N/A	N/A
Wolfspeed	$804.50 million	1.06	-$864.20 million	($5.95)	-1.13

Alimco Financial has higher earnings, but lower revenue than Wolfspeed.

Profitability

This table compares Alimco Financial and Wolfspeed’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alimco Financial	N/A	N/A	N/A
Wolfspeed	-93.31%	-49.86%	-5.96%

Institutional and Insider Ownership

0.2% of Alimco Financial shares are owned by institutional investors. 35.1% of Alimco Financial shares are owned by insiders. Comparatively, 0.8% of Wolfspeed shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Alimco Financial and Wolfspeed, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alimco Financial	0	0	0	0	0.00
Wolfspeed	2	10	4	0	2.13

Wolfspeed has a consensus price target of $17.36, suggesting a potential upside of 159.06%. Given Wolfspeed’s stronger consensus rating and higher possible upside, analysts clearly believe Wolfspeed is more favorable than Alimco Financial.

Volatility and Risk

Alimco Financial has a beta of 0.1, suggesting that its stock price is 90% less volatile than the S&P 500. Comparatively, Wolfspeed has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500.

About Alimco Financial

Alimco Financial Corporation focuses on business financing solutions. The company was formerly known as Alliance Semiconductor Corporation and changed its name to Alimco Financial Corporation in 2017. Alimco Financial Corporation was founded in 1985 and is based in West Palm Beach, Florida.

About Wolfspeed

Wolfspeed, Inc. operates as a powerhouse semiconductor company focuses on silicon carbide and gallium nitride (GaN) technologies in Europe, Hong Kong, China, rest of Asia-Pacific, the United States, and internationally. It offers silicon carbide and GaN materials, including silicon carbide bare wafers, epitaxial wafers, and GaN epitaxial layers on silicon carbide wafers to manufacture products for RF, power, and other applications. The company also provides power devices, such as silicon carbide Schottky diodes, metal oxide semiconductor field effect transistors (MOSFETs), and power modules for customers and distributors to use in applications, including electric vehicles comprising charging infrastructure, server power supplies, solar inverters, uninterruptible power supplies, industrial power supplies, and other applications. In addition, it offers RF devices comprising GaN-based die, high-electron mobility transistors, monolithic microwave integrated circuits, and laterally diffused MOSFET power transistors for telecommunications infrastructure, military, and other commercial applications. The company was formerly known as Cree, Inc. and changed its name to Wolfspeed, Inc. in October 2021. Wolfspeed, Inc. was incorporated in 1987 and is headquartered in Durham, North Carolina.