Head-To-Head Comparison: Allegro MicroSystems (NASDAQ:ALGM) vs. Infineon Technologies (OTCMKTS:IFNNY)

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

Risk & Volatility

Allegro MicroSystems has a beta of 1.67, suggesting that its share price is 67% more volatile than the S&P 500. Comparatively, Infineon Technologies has a beta of 1.9, suggesting that its share price is 90% more volatile than the S&P 500.

Insider & Institutional Ownership

56.5% of Allegro MicroSystems shares are owned by institutional investors. Comparatively, 0.2% of Infineon Technologies shares are owned by institutional investors. 0.5% of Allegro MicroSystems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Allegro MicroSystems and Infineon Technologies’ 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%
Infineon Technologies	14.08%	15.49%	9.30%

Valuation and Earnings

This table compares Allegro MicroSystems and Infineon Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allegro MicroSystems	$937.99 million	4.76	$152.70 million	$0.78	29.54
Infineon Technologies	$17.42 billion	N/A	$3.35 billion	$1.74	18.97

Infineon Technologies has higher revenue and earnings than Allegro MicroSystems. Infineon Technologies 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 recommendations and price targets for Allegro MicroSystems and Infineon Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allegro MicroSystems	0	0	8	0	3.00
Infineon Technologies	0	0	0	3	4.00

Allegro MicroSystems currently has a consensus target price of $33.38, suggesting a potential upside of 44.86%. Given Allegro MicroSystems’ higher probable upside, equities analysts clearly believe Allegro MicroSystems is more favorable than Infineon Technologies.

Summary

Infineon Technologies beats Allegro MicroSystems on 8 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 Infineon Technologies

Infineon Technologies AG designs, develops, manufactures, and markets semiconductors and semiconductor-based solutions worldwide. Its Automotive segment offers automotive microcontrollers; 3D ToF, magnetic, and pressure sensors; discrete power semiconductors; IGBT modules; industrial microcontrollers; power and memory ICs; transceivers; diodes, MOSEFTs, and modules; and voltage regulators for use in assistance and safety systems, comfort electronics, infotainment, powertrain, and security products. The company’s Green Industrial Power segment provides bare dies, discrete IGBTs, and driver ICs; SiC diodes, MOSFETs, and modules; and IGBT modules for home appliances, industrial drives, industrial power supplies, industrial robotics, industrial vehicles, and traction, as well as for energy generation, storage, and transmission. Its Power & Sensor Systems segment offers chips for gas and pressure sensors, and MEMS microphones; 3D ToF sensors; control ICs; discrete low-, mid-, and high-voltage power MOSFET; customized chips; GaN power switches; GPS low-noise amplifiers; low-voltage and high-voltage driver ICs; radar sensor ICs; RF antenna switches and power transistors; transient voltage suppressor diodes; SiC diode and MOSFETs; and USB controllers for use in audio amplifiers, automotive electronics, BLDC motors, cellular communications infrastructure, electric vehicle charging stations, human machine interaction, IoT, LED and conventional lighting systems, microinverter, mobile devices, power management, and special applications. The company’s Connected Secure Systems segment provides connectivity solutions, embedded security controllers, microcontrollers, and security controllers for authentication, automotive, consumer electronics, government identification document, IoT, mobile communication, payment system, ticketing, access control, and computing applications. Infineon Technologies AG was founded in 1999 and is headquartered in Neubiberg, Germany.