Netlist (OTCMKTS:NLST – Get Free Report) and Allegro MicroSystems (NASDAQ:ALGM – Get Free Report) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.
Risk and Volatility
Netlist has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, Allegro MicroSystems has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations for Netlist and Allegro MicroSystems, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Netlist | 0 | 0 | 1 | 0 | 3.00 |
| Allegro MicroSystems | 0 | 1 | 10 | 0 | 2.91 |
Profitability
This table compares Netlist and Allegro MicroSystems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Netlist | -37.19% | -852.20% | -94.11% |
| Allegro MicroSystems | -2.96% | 8.48% | 6.09% |
Valuation & Earnings
This table compares Netlist and Allegro MicroSystems”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Netlist | $69.21 million | 2.95 | -$60.40 million | ($0.22) | -3.41 |
| Allegro MicroSystems | $849.88 million | 4.99 | $152.70 million | ($0.14) | -164.57 |
Allegro MicroSystems has higher revenue and earnings than Netlist. Allegro MicroSystems is trading at a lower price-to-earnings ratio than Netlist, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
0.0% of Netlist shares are owned by institutional investors. Comparatively, 56.5% of Allegro MicroSystems shares are owned by institutional investors. 2.7% of Netlist 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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Allegro MicroSystems beats Netlist on 10 of the 14 factors compared between the two stocks.
About Netlist
Netlist, Inc. designs, manufactures, and markets memory subsystems for the server, high-performance computing, and communications markets in the United States and internationally. The company portfolio of proprietary technologies and design techniques, includes efficient planar design, alternative packaging techniques, and custom semiconductor logic, to deliver memory subsystems; and sells specialty memory modules and flash-based products for use in data center and industrial applications. It resells component products, including solid state drive (SSD), NAND flash, and dual inline memory module (DIMM) to storage customers, appliance customers, system builders, and cloud and datacenter customers; and sells component inventory to distributors and other users of memory integrated circuits. The company markets and sells its products through a direct sales force and a network of independent sales representatives. Netlist, Inc. was incorporated in 2000 and is headquartered in Irvine, California.
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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