Renesas Electronics (OTCMKTS:RNECY – Get Free Report) and Allegro MicroSystems (NASDAQ:ALGM – Get Free Report) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.
Profitability
This table compares Renesas Electronics and Allegro MicroSystems’ net margins, return on equity and return on assets.
Return on Equity
Return on Assets
Renesas Electronics
N/A
N/A
N/A
Allegro MicroSystems
24.25%
26.08%
21.74%
Analyst Recommendations
This is a summary of recent ratings and price targets for Renesas Electronics and Allegro MicroSystems, as provided by MarketBeat.
Hold Ratings
Buy Ratings
Strong Buy Ratings
Rating Score
Renesas Electronics
0
1
0
0
2.00
Allegro MicroSystems
0
2
4
0
2.67
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Allegro MicroSystems has a consensus price target of $48.86, suggesting a potential upside of 73.31%. Given Allegro MicroSystems’ stronger consensus rating and higher possible upside, analysts clearly believe Allegro MicroSystems is more favorable than Renesas Electronics.
Valuation and Earnings
This table compares Renesas Electronics and Allegro MicroSystems’ revenue, earnings per share (EPS) and valuation.
Price/Sales Ratio
Net Income
Earnings Per Share
Price/Earnings Ratio
Renesas Electronics
N/A
N/A
N/A
N/A
N/A
Allegro MicroSystems
$973.65 million
5.57
$187.36 million
$1.30
21.68
Allegro MicroSystems has higher revenue and earnings than Renesas Electronics.
Institutional and Insider Ownership
50.6% of Allegro MicroSystems shares are held by institutional investors. 9.7% of Allegro MicroSystems shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
Allegro MicroSystems beats Renesas Electronics on 9 of the 9 factors compared between the two stocks.
About Renesas Electronics
Renesas Electronics Corporation researches, develops, designs, manufactures, sells, and services semiconductors in Japan, China, rest of Asia, Europe, North America, and internationally. The company operates through Automotive Business and Industrial/Infrastructure/IoT Business segments It offers microcontrollers (MCUs) and microprocessors; amplifiers, audio and video, data converters, power line communication, and switches and multiplexer products; battery and power management, power devices, sensors, video and display, wireless power, system-on-chips, and MCU products; and specific clocks, clock distribution and generation, jitter attenuators, and crystal oscillator clock ICs and clock timing solutions. The company also provides buffers, haptic drivers, data compression, industrial Ethernet, IO-link line driver, memory interface, optical interconnect, photocouplers/optocouplers, power line communication, signal integrity, telecom datacom and interface, USB switches and hubs, and wireless connectivity products. In addition, it offers bus switches, first-in, first-out, memory interface, legacy memory interface, multi-port and SRAM memory, and standard logic products; and battery management, DC converters and power modules, discrete power devices, linear regulators, MOSFET and motor drivers, multi-channel power management ICs, USB type-C and power delivery, and wireless power. Further, the company provides modulators and demodulators, transistor arrays, and variable gain amplifiers, as well as RF amplifiers, attenuators, mixers, switches, and synthesizers; and environmental, flow, light and proximity, position, humidity, biosensors, and temperature sensor products, as well as senor signal conditioners products. Additionally, it offers space and harsh environment products and wireless connectivity products. Renesas Electronics Corporation was incorporated in 2002 and is headquartered in Tokyo, Japan.
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.
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