Financial Survey: Allegro MicroSystems (NASDAQ:ALGM) vs. Oxford Instruments (OTCMKTS:OXINF)

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Oxford Instruments and Allegro MicroSystems, as provided by MarketBeat.com.

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

Allegro MicroSystems has a consensus target price of $44.50, suggesting a potential upside of 51.67%. Given Allegro MicroSystems’ stronger consensus rating and higher probable upside, analysts clearly believe Allegro MicroSystems is more favorable than Oxford Instruments.

Institutional & Insider Ownership

56.5% of Allegro MicroSystems shares are owned by institutional investors. 9.7% of Allegro MicroSystems shares are owned 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.

Profitability

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

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

Volatility & Risk

Oxford Instruments has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, Allegro MicroSystems has a beta of 1.82, meaning that its share price is 82% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oxford Instruments	$536.00 million	2.84	$70.63 million	N/A	N/A
Allegro MicroSystems	$973.65 million	5.71	$187.36 million	$1.14	25.26

Allegro MicroSystems has higher revenue and earnings than Oxford Instruments.

Summary

Allegro MicroSystems beats Oxford Instruments on 12 of the 12 factors compared between the two stocks.

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.

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.