Contrasting Alphawave IP Group (OTCMKTS:AWEVF) and Allegro MicroSystems (NASDAQ:ALGM)

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Alphawave IP Group and Allegro MicroSystems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alphawave IP Group	0	0	0	0	N/A
Allegro MicroSystems	0	0	8	0	3.00

Allegro MicroSystems has a consensus price target of $33.38, indicating a potential upside of 61.15%. Given Allegro MicroSystems’ higher possible upside, analysts clearly believe Allegro MicroSystems is more favorable than Alphawave IP Group.

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.

Profitability

This table compares Alphawave IP Group and Allegro MicroSystems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alphawave IP Group	N/A	N/A	N/A
Allegro MicroSystems	7.91%	13.88%	10.65%

Valuation and Earnings

This table compares Alphawave IP Group and Allegro MicroSystems”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alphawave IP Group	N/A	N/A	N/A	N/A	N/A
Allegro MicroSystems	$937.99 million	4.28	$152.70 million	$0.78	26.55

Allegro MicroSystems has higher revenue and earnings than Alphawave IP Group.

Summary

Allegro MicroSystems beats Alphawave IP Group on 8 of the 8 factors compared between the two stocks.

About Alphawave IP Group

Alphawave IP Group plc develops and sells connectivity solutions in North America, China, the Asia Pacific, Europe, the Middle East, Africa, and the United Kingdom. The company offers silicon IP solutions, chiplets, custom silicon, and connectivity products. It serves the data center, artificial intelligence, 5G wireless infrastructure, data networking, autonomous vehicles, data storage, and solid-state storage markets. Alphawave IP Group plc was founded in 2017 and is headquartered in London, the United Kingdom.

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.