SmartKem (NASDAQ:SMTK) versus Allegro MicroSystems (NASDAQ:ALGM) Head-To-Head Contrast

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

Valuation & Earnings

This table compares Allegro MicroSystems and SmartKem”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allegro MicroSystems	$890.10 million	7.45	-$14.90 million	$0.06	592.83
SmartKem	$700,000.00	0.94	-$10.51 million	($107.00)	-0.01

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

Institutional & Insider Ownership

56.5% of Allegro MicroSystems shares are owned by institutional investors. 0.5% of Allegro MicroSystems shares are owned by company insiders. Comparatively, 3.5% of SmartKem shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Allegro MicroSystems and SmartKem, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allegro MicroSystems	0	2	10	1	2.92
SmartKem	1	0	0	0	1.00

Allegro MicroSystems presently has a consensus target price of $53.17, suggesting a potential upside of 49.47%. Given Allegro MicroSystems’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Allegro MicroSystems is more favorable than SmartKem.

Volatility and Risk

Allegro MicroSystems has a beta of 1.99, indicating that its stock price is 99% more volatile than the S&P 500. Comparatively, SmartKem has a beta of 3.71, indicating that its stock price is 271% more volatile than the S&P 500.

Profitability

This table compares Allegro MicroSystems and SmartKem’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allegro MicroSystems	1.50%	8.30%	5.65%
SmartKem	-3,997.69%	-520.47%	-168.25%

Summary

Allegro MicroSystems beats SmartKem on 12 of the 15 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 SmartKem

SmartKem, Inc. develops electronics transistors using its proprietary advanced semiconductor materials. Its technology can be used in a range of applications including next generation MicroLED, LCD and AMOLED displays, as well as advanced computer and AI chip packaging, and a new type of sensor. The company was founded on September 21, 2018 and is headquartered in Blackley, the United Kingdom.