Infineon Technologies (OTCMKTS:IFNNY – Get Free Report) and Allegro MicroSystems (NASDAQ:ALGM – Get Free Report) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.
Risk & Volatility
Infineon Technologies has a beta of 1.9, indicating that its share price is 90% more volatile than the S&P 500. Comparatively, Allegro MicroSystems has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500.
Institutional and Insider Ownership
0.2% of Infineon Technologies shares are held by institutional investors. Comparatively, 56.5% of Allegro MicroSystems shares are held by institutional investors. 0.5% of Allegro MicroSystems shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Infineon Technologies | 14.08% | 15.49% | 9.30% |
| Allegro MicroSystems | 7.91% | 13.88% | 10.65% |
Valuation and Earnings
This table compares Infineon Technologies 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 | |
| Infineon Technologies | $17.42 billion | N/A | $3.35 billion | $1.74 | 18.97 |
| Allegro MicroSystems | $937.99 million | 4.76 | $152.70 million | $0.78 | 29.54 |
Infineon Technologies has higher revenue and earnings than Allegro MicroSystems. Infineon Technologies is trading at a lower price-to-earnings ratio than Allegro MicroSystems, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Infineon Technologies and Allegro MicroSystems, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Infineon Technologies | 0 | 0 | 0 | 3 | 4.00 |
| Allegro MicroSystems | 0 | 0 | 8 | 0 | 3.00 |
Allegro MicroSystems has a consensus target price of $33.38, suggesting a potential upside of 44.86%. Given Allegro MicroSystems’ higher probable upside, analysts clearly believe Allegro MicroSystems is more favorable than Infineon Technologies.
Summary
Infineon Technologies beats Allegro MicroSystems on 8 of the 14 factors compared between the two stocks.
About Infineon Technologies
Infineon Technologies AG designs, develops, manufactures, and markets semiconductors and semiconductor-based solutions worldwide. Its Automotive segment offers automotive microcontrollers; 3D ToF, magnetic, and pressure sensors; discrete power semiconductors; IGBT modules; industrial microcontrollers; power and memory ICs; transceivers; diodes, MOSEFTs, and modules; and voltage regulators for use in assistance and safety systems, comfort electronics, infotainment, powertrain, and security products. The company’s Green Industrial Power segment provides bare dies, discrete IGBTs, and driver ICs; SiC diodes, MOSFETs, and modules; and IGBT modules for home appliances, industrial drives, industrial power supplies, industrial robotics, industrial vehicles, and traction, as well as for energy generation, storage, and transmission. Its Power & Sensor Systems segment offers chips for gas and pressure sensors, and MEMS microphones; 3D ToF sensors; control ICs; discrete low-, mid-, and high-voltage power MOSFET; customized chips; GaN power switches; GPS low-noise amplifiers; low-voltage and high-voltage driver ICs; radar sensor ICs; RF antenna switches and power transistors; transient voltage suppressor diodes; SiC diode and MOSFETs; and USB controllers for use in audio amplifiers, automotive electronics, BLDC motors, cellular communications infrastructure, electric vehicle charging stations, human machine interaction, IoT, LED and conventional lighting systems, microinverter, mobile devices, power management, and special applications. The company’s Connected Secure Systems segment provides connectivity solutions, embedded security controllers, microcontrollers, and security controllers for authentication, automotive, consumer electronics, government identification document, IoT, mobile communication, payment system, ticketing, access control, and computing applications. Infineon Technologies AG was founded in 1999 and is headquartered in Neubiberg, Germany.
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.
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