Allegro MicroSystems (NASDAQ:ALGM – Get Free Report) and Sequans Communications (NYSE:SQNS – Get Free Report) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.
Profitability
This table compares Allegro MicroSystems and Sequans Communications’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Allegro MicroSystems | -10.07% | 1.04% | 0.70% |
| Sequans Communications | 158.42% | 115.57% | 43.95% |
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Allegro MicroSystems and Sequans Communications, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Allegro MicroSystems | 0 | 1 | 6 | 1 | 3.00 |
| Sequans Communications | 0 | 0 | 1 | 0 | 3.00 |
Volatility & Risk
Allegro MicroSystems has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500. Comparatively, Sequans Communications has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500.
Institutional and Insider Ownership
56.5% of Allegro MicroSystems shares are owned by institutional investors. Comparatively, 63.3% of Sequans Communications shares are owned by institutional investors. 0.4% of Allegro MicroSystems shares are owned by company insiders. Comparatively, 9.4% of Sequans Communications shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Allegro MicroSystems and Sequans Communications”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Allegro MicroSystems | $725.01 million | 8.64 | -$73.01 million | ($0.39) | -86.85 |
| Sequans Communications | $36.76 million | 0.93 | $57.57 million | $2.18 | 0.61 |
Sequans Communications has lower revenue, but higher earnings than Allegro MicroSystems. Allegro MicroSystems is trading at a lower price-to-earnings ratio than Sequans Communications, indicating that it is currently the more affordable of the two stocks.
Summary
Sequans Communications beats Allegro MicroSystems on 9 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 Sequans Communications
Sequans Communications S.A. engages in the fabless designing, developing, and supplying of cellular semiconductor solutions for massive and broadband Internet of Things (IoT) markets in Taiwan, Korea, China, rest of Asia, Germany, the United States, and internationally. It offers baseband solutions for use in encoding and decoding data based on 4G and 5G protocols for wireless processing platform for a cellular device; RF transceivers used to transmit and receive wireless transmissions; highly integrated SoC solutions that combine various functions into a single die or package; and LTE modules. The company also provides software, including source code and tools to enable manufacturers to integrate their solutions into their devices; and design support services. The company serves OEMs and ODMs Customers, as well as 4G and 5G wireless carriers. Sequans Communications S.A. was incorporated in 2003 and is based in Paris, France.
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