Head-To-Head Review: Allegro MicroSystems (NASDAQ:ALGM) versus Hua Hong Semiconductor (OTCMKTS:HHUSF)

Allegro MicroSystems (NASDAQ:ALGM) and Hua Hong Semiconductor (OTCMKTS:HHUSF) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, risk, dividends and valuation.

Insider & Institutional Ownership

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, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Allegro MicroSystems and Hua Hong Semiconductor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allegro MicroSystems	7.91%	13.88%	10.65%
Hua Hong Semiconductor	N/A	N/A	N/A

Earnings & Valuation

This table compares Allegro MicroSystems and Hua Hong Semiconductor”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allegro MicroSystems	$937.99 million	4.17	$152.70 million	$0.78	25.88
Hua Hong Semiconductor	N/A	N/A	N/A	N/A	N/A

Allegro MicroSystems has higher revenue and earnings than Hua Hong Semiconductor.

Analyst Ratings

This is a summary of current ratings for Allegro MicroSystems and Hua Hong Semiconductor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allegro MicroSystems	0	0	8	0	3.00
Hua Hong Semiconductor	0	0	0	0	N/A

Allegro MicroSystems currently has a consensus price target of $33.38, indicating a potential upside of 65.30%. Given Allegro MicroSystems’ higher possible upside, equities analysts plainly believe Allegro MicroSystems is more favorable than Hua Hong Semiconductor.

Summary

Allegro MicroSystems beats Hua Hong Semiconductor on 8 of the 8 factors compared between the two stocks.

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.

About Hua Hong Semiconductor

Hua Hong Semiconductor Limited, an investment holding company, manufactures and sells semiconductor products. It provides embedded non-volatile memory, standard logic and mixed-signal, radio frequency, power management integrated circuits, power discrete, and automotive solutions. The company also offers foundry services; and design services comprising standard and customized IP development, full-custom layout design, and customer-specific integrated solutions, as well as design support and tape out services. In addition, it provides multi-project wafer services; mask making services; and backend services, such as in-house testing, backside processing and dicing, and backend turnkey services, as well as assembly and testing services. Further, the company engages in real estate development; and trading activities. Its products are used in consumer electronics, communications, computing, industrial, and automotive markets in the People’s Republic of China, North America, Europe, Japan, and other Asian countries. The company was founded in 1997 and is headquartered in Shanghai, the People’s Republic of China.