Allegro MicroSystems (NASDAQ:ALGM) vs. Hua Hong Semiconductor (OTCMKTS:HHUSF) Critical Survey

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

Profitability

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

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hua Hong Semiconductor	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 Hua Hong Semiconductor.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Hua Hong Semiconductor and Allegro MicroSystems, as provided by MarketBeat.

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

Allegro MicroSystems has a consensus target price of $33.38, indicating a potential upside of 61.15%. Given Allegro MicroSystems’ higher probable upside, analysts clearly believe Allegro MicroSystems is more favorable than Hua Hong Semiconductor.

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

Summary

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

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.

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.