Head-To-Head Comparison: SCI Engineered Materials (OTCMKTS:SCIA) vs. Allegro MicroSystems (NASDAQ:ALGM)

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

Earnings and Valuation

This table compares SCI Engineered Materials 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
SCI Engineered Materials	$19.61 million	1.13	$1.75 million	$0.38	13.16
Allegro MicroSystems	$725.01 million	10.22	-$73.01 million	($0.08)	-500.00

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

Institutional and Insider Ownership

27.6% of SCI Engineered Materials shares are held by institutional investors. Comparatively, 56.5% of Allegro MicroSystems shares are held by institutional investors. 19.3% of SCI Engineered Materials shares are held by insiders. Comparatively, 0.4% of Allegro MicroSystems shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for SCI Engineered Materials and Allegro MicroSystems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SCI Engineered Materials	0	0	0	0	0.00
Allegro MicroSystems	1	1	10	0	2.75

Allegro MicroSystems has a consensus price target of $45.00, indicating a potential upside of 12.50%. Given Allegro MicroSystems’ stronger consensus rating and higher probable upside, analysts clearly believe Allegro MicroSystems is more favorable than SCI Engineered Materials.

Volatility & Risk

SCI Engineered Materials has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, Allegro MicroSystems has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500.

Profitability

This table compares SCI Engineered Materials and Allegro MicroSystems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SCI Engineered Materials	8.91%	12.67%	9.93%
Allegro MicroSystems	-1.57%	4.35%	2.92%

About SCI Engineered Materials

SCI Engineered Materials, Inc. engages in the manufacture and supply of materials for physical vapor deposition thin film applications in the United States. It offers ceramic targets, metal sputtering targets, and backing plates for use in semiconductors, thin film solar, flat panel displays, defense, aerospace, and photonics industries. The company’s materials are used to produce nano layers of metals and oxides for advanced material systems; and in applying decorative coatings for end uses, such as sink faucets to produce various electronic, photonic, and semiconductor products. It serves domestic and multi-national corporations, universities, and research institutions. The company was formerly known as Superconductive Components, Inc. and changed its name to SCI Engineered Materials, Inc. in 2007. SCI Engineered Materials, Inc. was incorporated in 1987 and is headquartered in Columbus, Ohio.

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.