Head to Head Review: Allegro MicroSystems (NASDAQ:ALGM) and Silex Systems (OTCMKTS:SILXY)

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

Earnings and Valuation

This table compares Silex Systems and Allegro MicroSystems”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Silex Systems	N/A	N/A	N/A	C($0.87)	-19.31
Allegro MicroSystems	$849.88 million	4.81	$152.70 million	($0.14)	-150.71

Allegro MicroSystems has higher revenue and earnings than Silex Systems. Allegro MicroSystems is trading at a lower price-to-earnings ratio than Silex Systems, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider 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 endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Silex Systems and Allegro MicroSystems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Silex Systems	0	0	0	0	N/A
Allegro MicroSystems	0	0	8	0	3.00

Allegro MicroSystems has a consensus target price of $32.13, indicating a potential upside of 52.25%. Given Allegro MicroSystems’ higher probable upside, analysts plainly believe Allegro MicroSystems is more favorable than Silex Systems.

Profitability

This table compares Silex Systems and Allegro MicroSystems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Silex Systems	N/A	N/A	N/A
Allegro MicroSystems	7.91%	13.88%	10.65%

Summary

Allegro MicroSystems beats Silex Systems on 9 of the 10 factors compared between the two stocks.

About Silex Systems

Silex Systems Limited, a technology commercialization company, engages in the research and development, commercialization, and license of SILEX laser enrichment technology in Australia. It operates through three segments: Silex Systems, Translucent, and Silex USA. The company also develops cREO, a semiconductor technology. Silex Systems Limited was incorporated in 1987 and is based in Sydney, Australia.

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.