nLIGHT (NASDAQ:LASR – 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 compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, risk and valuation.
Profitability
This table compares nLIGHT and Allegro MicroSystems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| nLIGHT | -25.62% | -19.58% | -16.06% |
| Allegro MicroSystems | 7.91% | 13.88% | 10.65% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for nLIGHT and Allegro MicroSystems, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| nLIGHT | 0 | 0 | 2 | 0 | 3.00 |
| Allegro MicroSystems | 0 | 1 | 8 | 0 | 2.89 |
Institutional & Insider Ownership
83.9% of nLIGHT shares are held by institutional investors. Comparatively, 56.5% of Allegro MicroSystems shares are held by institutional investors. 6.1% of nLIGHT shares are held by insiders. Comparatively, 0.5% of Allegro MicroSystems shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk & Volatility
nLIGHT has a beta of 2.36, meaning that its share price is 136% more volatile than the S&P 500. Comparatively, Allegro MicroSystems has a beta of 1.68, meaning that its share price is 68% more volatile than the S&P 500.
Valuation and Earnings
This table compares nLIGHT 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 | |
| nLIGHT | $197.56 million | 2.61 | -$41.67 million | ($1.02) | -10.65 |
| Allegro MicroSystems | $937.99 million | 4.91 | $152.70 million | $0.78 | 30.50 |
Allegro MicroSystems has higher revenue and earnings than nLIGHT. nLIGHT is trading at a lower price-to-earnings ratio than Allegro MicroSystems, indicating that it is currently the more affordable of the two stocks.
Summary
Allegro MicroSystems beats nLIGHT on 9 of the 14 factors compared between the two stocks.
About nLIGHT
nLIGHT, Inc. designs, develops, manufactures, and sells semiconductor and fiber lasers for industrial, microfabrication, and aerospace and defense applications. The company operates in two segments, Laser Products and Advanced Development. It offers semiconductor lasers with various ranges of power levels, wavelengths, and output fiber sizes; and programmable and serviceable fiber lasers for use in industrial and aerospace and defense applications. The company also provides laser sensors, including light detection and ranging technologies for intelligence, surveillance, and reconnaissance applications; and fiber amplifiers, beam combination, and control systems for use in high-energy laser systems in directed energy applications. It sells its products through direct sales force in the United States, China, South Korea, and European countries, as well as through independent sales representatives and distributors in Asia, Australia, Europe, the Middle East, and South America. The company was formerly known as nLight Photonics Corporation and changed its name to nLIGHT, Inc. in January 2016. nLIGHT, Inc. was incorporated in 2000 and is headquartered in Camas, Washington.
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; power ICs comprising motor driver ICs, regulator and LED driver ICs, and isolated gate drivers; and photonic and advanced 3D sensing components. The company sells its products to original equipment manufacturers and suppliers 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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