SuperCom (NASDAQ:SPCB – Get Rating) and Allegro MicroSystems (NASDAQ:ALGM – Get Rating) are both industrial products companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, dividends, earnings, profitability and institutional ownership.
This is a summary of current ratings and target prices for SuperCom and Allegro MicroSystems, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
SuperCom currently has a consensus price target of $1.00, indicating a potential upside of 198.51%. Allegro MicroSystems has a consensus price target of $32.50, indicating a potential upside of 23.11%. Given SuperCom’s higher probable upside, analysts plainly believe SuperCom is more favorable than Allegro MicroSystems.
Risk and Volatility
Insider & Institutional Ownership
4.4% of SuperCom shares are held by institutional investors. Comparatively, 46.4% of Allegro MicroSystems shares are held by institutional investors. 13.6% 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.
This table compares SuperCom and Allegro MicroSystems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares SuperCom and Allegro MicroSystems’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SuperCom||$12.27 million||0.98||-$10.14 million||($0.55)||-0.61|
|Allegro MicroSystems||$768.67 million||6.57||$119.41 million||$0.52||50.77|
Allegro MicroSystems has higher revenue and earnings than SuperCom. SuperCom is trading at a lower price-to-earnings ratio than Allegro MicroSystems, indicating that it is currently the more affordable of the two stocks.
Allegro MicroSystems beats SuperCom on 12 of the 13 factors compared between the two stocks.
SuperCom Ltd. provides digital identity, Internet of Things and connectivity, and cyber security products and solutions to governments, and private and public organizations worldwide. It offers MAGNA, a common platform for national ID registries, e-passports, biometric visas, automated fingerprint identification systems, digitized driver's licenses, and electronic voter registration and election management. The company's PureRF suite is a solution based on RFID tag technology to identify, locate, track, monitor, count, and protect people and objects. Its PureRF suite comprises PureRF tags, hands-free long-range RFID asset and vehicle tags, PureRF readers, PureRF activators, and PureRF initializers, house arrest monitoring systems, PureTag RF bracelets, PureCom RF base stations, GPS offender tracking systems, PureTrack, PureBeacon, PureMonitor offender electronic monitoring software, inmate monitoring systems, DoorGuard tracking station, and personnel tags. In addition, the company offers domestic violence victim protection systems. Further, it provides connectivity products and solutions comprising AVIDITY WBSac, BOLSTER WBSn, BreezeULTRA P6000, Arena controller, and BreezeNET B. Additionally, the company offers Safend's Encryption Suite that protects the organization's sensitive data; and designs solutions for carrier Wi-Fi, enterprise connectivity, smart city, smart hospitality, connected campuses, and connected events. It sells its systems and products through local representatives, subsidiaries, and distribution channels, as well as independent representatives and resellers. The company was formerly known as Vuance Ltd. and changed its name to SuperCom Ltd. in January 2013. SuperCom Ltd. was incorporated in 1988 and is headquartered in Tel Aviv-Yafo, Israel.
About Allegro MicroSystems
Allegro MicroSystems, Inc. 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, and regulator and LED driver ICs; and photonic and 3D sensing components, including photodiodes, eye-safe lasers, and readout ICs for LiDAR applications. 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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