Financial Analysis: Allegro MicroSystems (NASDAQ:ALGM) and Mobix Labs (NASDAQ:MOBX)

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Allegro MicroSystems and Mobix Labs, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allegro MicroSystems	1	2	9	0	2.67
Mobix Labs	1	0	0	0	1.00

Allegro MicroSystems presently has a consensus target price of $38.78, indicating a potential upside of 23.93%. Given Allegro MicroSystems’ stronger consensus rating and higher probable upside, analysts plainly believe Allegro MicroSystems is more favorable than Mobix Labs.

Valuation & Earnings

This table compares Allegro MicroSystems and Mobix Labs”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allegro MicroSystems	$725.01 million	7.99	-$73.01 million	($0.16)	-195.56
Mobix Labs	$6.44 million	2.27	-$20.03 million	($1.10)	-0.22

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

Profitability

This table compares Allegro MicroSystems and Mobix Labs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allegro MicroSystems	-3.60%	2.90%	1.93%
Mobix Labs	-381.82%	-5,149.05%	-113.77%

Volatility & Risk

Allegro MicroSystems has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500. Comparatively, Mobix Labs has a beta of -0.08, meaning that its stock price is 108% less volatile than the S&P 500.

Institutional and Insider Ownership

56.5% of Allegro MicroSystems shares are held by institutional investors. Comparatively, 8.6% of Mobix Labs shares are held by institutional investors. 0.4% of Allegro MicroSystems shares are held by company insiders. Comparatively, 32.0% of Mobix Labs shares are held 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.

Summary

Allegro MicroSystems beats Mobix Labs on 11 of the 13 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 Mobix Labs

Mobix Labs, Inc., a fabless semiconductor company, provides wireless and connectivity solutions for next generation communication systems, including C-Band and mmWave 5G and high bandwidth cable applications. Its products include True5G chipset solutions; true xero active optical cables and related products designed to deliver fiber optic connectivity for a range of applications, including 5G infrastructure, autonomous vehicles, Pro A/V, AR/VR, remote medical systems, and others; electromagnetic interference filters deployed in aerospace, military, defense, medical, and healthcare products. The company was incorporated in 2020 and is based in Irvine, California. Mobix Labs, Inc. operates as a subsidiary of YDENS HOLDINGS, LLC.