Analyzing Allegro MicroSystems (NASDAQ:ALGM) and Mobix Labs (NASDAQ:MOBX)

Mobix Labs (NASDAQ:MOBX) and Allegro MicroSystems (NASDAQ:ALGM) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent recommendations for Mobix Labs and Allegro MicroSystems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mobix Labs	1	0	0	0	1.00
Allegro MicroSystems	1	2	9	0	2.67

Allegro MicroSystems has a consensus target price of $38.78, suggesting a potential upside of 23.93%. Given Allegro MicroSystems’ stronger consensus rating and higher probable upside, analysts clearly believe Allegro MicroSystems is more favorable than Mobix Labs.

Insider & Institutional Ownership

8.6% of Mobix Labs shares are owned by institutional investors. Comparatively, 56.5% of Allegro MicroSystems shares are owned by institutional investors. 32.0% of Mobix Labs shares are owned by company insiders. Comparatively, 0.4% of Allegro MicroSystems shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Mobix Labs has a beta of -0.08, indicating that its share price is 108% less volatile than the S&P 500. Comparatively, Allegro MicroSystems has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500.

Valuation & Earnings

This table compares Mobix Labs and Allegro MicroSystems”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mobix Labs	$6.44 million	2.27	-$20.03 million	($1.10)	-0.22
Allegro MicroSystems	$725.01 million	7.99	-$73.01 million	($0.16)	-195.56

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

Profitability

This table compares Mobix Labs and Allegro MicroSystems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mobix Labs	-381.82%	-5,149.05%	-113.77%
Allegro MicroSystems	-3.60%	2.90%	1.93%

Summary

Allegro MicroSystems beats Mobix Labs on 11 of the 13 factors compared between the two stocks.

About Mobix Labs

Mobix Labs, Inc., a fabless semiconductor company, provides wireless and connectivity solutions for next generation communication systems, including C-Band and mmWave 5G and high bandwidth cable applications. Its products include True5G chipset solutions; true xero active optical cables and related products designed to deliver fiber optic connectivity for a range of applications, including 5G infrastructure, autonomous vehicles, Pro A/V, AR/VR, remote medical systems, and others; electromagnetic interference filters deployed in aerospace, military, defense, medical, and healthcare products. The company was incorporated in 2020 and is based in Irvine, California. Mobix Labs, Inc. operates as a subsidiary of YDENS HOLDINGS, LLC.

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.