Reviewing Allegro MicroSystems (NASDAQ:ALGM) and Oxford Instruments (OTCMKTS:OXINF)

Allegro MicroSystems (NASDAQ:ALGM) and Oxford Instruments (OTCMKTS:OXINF) 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, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.

Risk & Volatility

Allegro MicroSystems has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500. Comparatively, Oxford Instruments has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.

Earnings and Valuation

This table compares Allegro MicroSystems and Oxford Instruments’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allegro MicroSystems	$973.65 million	5.94	$187.36 million	$1.14	26.29
Oxford Instruments	$536.00 million	2.84	$70.63 million	N/A	N/A

Allegro MicroSystems has higher revenue and earnings than Oxford Instruments.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Allegro MicroSystems and Oxford Instruments, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allegro MicroSystems	0	1	4	0	2.80
Oxford Instruments	0	1	0	0	2.00

Allegro MicroSystems currently has a consensus price target of $44.50, suggesting a potential upside of 48.48%. Given Allegro MicroSystems’ stronger consensus rating and higher possible upside, research analysts clearly believe Allegro MicroSystems is more favorable than Oxford Instruments.

Profitability

This table compares Allegro MicroSystems and Oxford Instruments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allegro MicroSystems	21.14%	23.84%	19.14%
Oxford Instruments	N/A	N/A	N/A

Institutional and Insider Ownership

56.5% of Allegro MicroSystems shares are owned by institutional investors. 9.7% of Allegro MicroSystems shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Allegro MicroSystems beats Oxford Instruments on 12 of the 12 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; power ICs comprising motor driver ICs, regulator and LED driver ICs, and isolated gate drivers; and photonic and advanced 3D sensing components. The company sells its products to original equipment manufacturers and suppliers 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 Oxford Instruments

Oxford Instruments plc designs and supplies technology products and services in Europe, North America, Asia, and internationally. It operates through three segments: Materials & Characterisation, Research & Discovery, and Service & Healthcare. The company offers atomic force, electron, and raman microscopy; deposition and etch tools; low temperature systems; optical imaging; nuclear magnetic resonance, modular optical spectroscopy; and x-ray. Its products are used in various industries, such as advanced manufacturing, agriculture and food, astronomy, automotive and aerospace, bio imaging and life science, chemical and catalysis, energy generation and storage, forensics and environment, geology, petrology, mining, metals, alloys, composites, ceramics, pharma, photonics, polymers, quantum technologies, semiconductors, microelectronics, and data storage. Oxford Instruments plc was founded in 1959 and is headquartered in Abingdon, the United Kingdom.