Contrasting Allegro MicroSystems (NASDAQ:ALGM) and Paragon ID (OTCMKTS:PAGDF)

Paragon ID (OTCMKTS:PAGDF) and Allegro MicroSystems (NASDAQ:ALGM) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitability, analyst recommendations, risk, institutional ownership and valuation.

Insider & Institutional Ownership

56.5% of Allegro MicroSystems shares are owned by institutional investors. 0.5% of Allegro MicroSystems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Paragon ID and Allegro MicroSystems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paragon ID	0	0	0	0	N/A
Allegro MicroSystems	0	0	8	0	3.00

Allegro MicroSystems has a consensus target price of $32.13, suggesting a potential upside of 52.25%. Given Allegro MicroSystems’ higher possible upside, analysts clearly believe Allegro MicroSystems is more favorable than Paragon ID.

Valuation and Earnings

This table compares Paragon ID and Allegro MicroSystems”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paragon ID	N/A	N/A	N/A	N/A	N/A
Allegro MicroSystems	$1.05 billion	3.90	$152.70 million	($0.14)	-150.70

Allegro MicroSystems has higher revenue and earnings than Paragon ID.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Paragon ID	N/A	N/A	N/A
Allegro MicroSystems	-2.96%	8.47%	6.06%

Summary

Allegro MicroSystems beats Paragon ID on 7 of the 8 factors compared between the two stocks.

About Paragon ID

Paragon ID SA provides identification solutions worldwide. It offers access control, brand protection, contactless ticketing, label, customer relationship management, magnetic and mobile ticketing, near field communication, operation maintenance, RFID technology, secure application module, smartcard kiosk, stock management, timed use ticketing, transport item tracking, and secure service solutions. The company also provides contactless and dual interface smart cards, identification documents, metal bank cards, passport E-covers, RFID labels, and eTrust that transforms secure paper-based products into intelligent documents, as well as various terminals, including couplers, readers, and accessories. It serves various clients in automotive, aviation, gaming, health, higher education, logistics, luxury products, manufacturing, mass transit and transport, mobility, parking, payment, pharmaceutical, retail, secure ID, and sport and leisure industries. The company was incorporated in 2019 and is headquartered in Mougins, France. Paragon ID SA is a subsidiary of Paragon Group Limited.

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.