Allegro MicroSystems (NASDAQ:ALGM) and AUO (OTCMKTS:AUOTY) Head-To-Head Comparison

AUO (OTCMKTS:AUOTY) and Allegro MicroSystems (NASDAQ:ALGM) are both mid-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, dividends and risk.

Insider and Institutional Ownership

56.5% of Allegro MicroSystems shares are owned by institutional investors. 16.0% of AUO 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 endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for AUO and Allegro MicroSystems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AUO	0	0	0	0	0.00
Allegro MicroSystems	0	1	9	0	2.90

Allegro MicroSystems has a consensus price target of $30.70, indicating a potential upside of 10.89%. Given Allegro MicroSystems’ stronger consensus rating and higher possible upside, analysts plainly believe Allegro MicroSystems is more favorable than AUO.

Volatility and Risk

AUO has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, Allegro MicroSystems has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500.

Earnings and Valuation

This table compares AUO and Allegro MicroSystems”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AUO	N/A	N/A	N/A	N/A	N/A
Allegro MicroSystems	$1.05 billion	4.86	$152.70 million	($0.35)	-79.10

Allegro MicroSystems has higher revenue and earnings than AUO.

Profitability

This table compares AUO and Allegro MicroSystems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AUO	N/A	N/A	N/A
Allegro MicroSystems	-8.45%	4.31%	3.00%

Summary

Allegro MicroSystems beats AUO on 8 of the 10 factors compared between the two stocks.

About AUO

AUO Corporation researches, develops, produces, and sells thin film transistor liquid crystal displays (TFT-LCDs) and other flat panel displays for various applications. It operates through two segments, Display and Energy. The company designs, manufactures, and sells ingots, solar wafers, and solar modules, as well as provides technical engineering and maintenance services for solar system projects. It also sells and leases content management system and related hardware; designs digital signage content and field curation solutions; plans, designs, and develops construction project for environmental protection and related project management; and designs, manufactures, and sells TFT-LCD modules, TV sets and related parts, backlight modules, automotive parts, and precision plastic parts. In addition, the company engages in the development, manufacturing, and sale of medical equipment; services related to site rental and educational activities; research and development, and IP related business; solar power generation; and sale and sales support of TFTLCD panels. Further, it designs, develops, and sells software and hardware for health care industry; provides software and hardware integration system and equipment relating to intelligent manufacturing, as well as software development and related consulting services; and investment services. It operates in the People's Republic of China, Taiwan, the United States, Japan, Singapore, and internationally. The company was formerly known as AU Optronics Corp. and changed its name to AUO Corporation in June 2022. AUO Corporation was founded in 1996 and is headquartered in Hsinchu City, Taiwan.

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.