Astera Labs (NASDAQ:ALAB) versus Allegro MicroSystems (NASDAQ:ALGM) Head to Head Review

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

Valuation and Earnings

This table compares Astera Labs and Allegro MicroSystems’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Astera Labs	$115.79 million	51.45	-$26.26 million	N/A	N/A
Allegro MicroSystems	$1.05 billion	4.10	$152.70 million	$0.78	28.42

Allegro MicroSystems has higher revenue and earnings than Astera Labs.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Astera Labs	N/A	N/A	N/A
Allegro MicroSystems	7.91%	13.88%	10.65%

Insider & Institutional Ownership

56.5% of Allegro MicroSystems shares are owned by institutional investors. 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 is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Astera Labs and Allegro MicroSystems, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Astera Labs	0	0	11	0	3.00
Allegro MicroSystems	0	1	8	0	2.89

Astera Labs presently has a consensus target price of $71.36, indicating a potential upside of 87.65%. Allegro MicroSystems has a consensus target price of $34.44, indicating a potential upside of 55.37%. Given Astera Labs’ stronger consensus rating and higher possible upside, analysts plainly believe Astera Labs is more favorable than Allegro MicroSystems.

Summary

Allegro MicroSystems beats Astera Labs on 7 of the 11 factors compared between the two stocks.

About Astera Labs

Astera Labs, Inc. designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI infrastructure. Its Intelligent Connectivity Platform is comprised of a portfolio of data, network, and memory connectivity products, which are built on a unifying software-defined architecture that enables customers to deploy and operate high performance cloud and AI infrastructure at scale. The company was incorporated in 2017 and is based in Santa Clara, 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; 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.