Monolithic Power Systems (NASDAQ:MPWR) and Allegro MicroSystems (NASDAQ:ALGM) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.
Valuation and Earnings
This table compares Monolithic Power Systems and Allegro MicroSystems' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Monolithic Power Systems | $627.92 million | 27.18 | $108.84 million | $2.53 | 147.85 |
Allegro MicroSystems | N/A | N/A | N/A | N/A | N/A |
Monolithic Power Systems has higher revenue and earnings than Allegro MicroSystems.
Insider and Institutional Ownership
93.3% of Monolithic Power Systems shares are owned by institutional investors. 3.0% of Monolithic Power Systems shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings for Monolithic Power Systems and Allegro MicroSystems, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Monolithic Power Systems | 0 | 0 | 10 | 0 | 3.00 |
Allegro MicroSystems | 0 | 0 | 8 | 0 | 3.00 |
Monolithic Power Systems presently has a consensus target price of $370.00, suggesting a potential downside of 1.04%. Allegro MicroSystems has a consensus target price of $33.50, suggesting a potential upside of 29.79%. Given Allegro MicroSystems' higher possible upside, analysts clearly believe Allegro MicroSystems is more favorable than Monolithic Power Systems.
Profitability
This table compares Monolithic Power Systems and Allegro MicroSystems' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Monolithic Power Systems | 19.78% | 17.95% | 14.33% |
Allegro MicroSystems | N/A | N/A | N/A |
Summary
Monolithic Power Systems beats Allegro MicroSystems on 7 of the 8 factors compared between the two stocks.