Allegro MicroSystems, Inc. (ALGM) vs Silicon Motion Technology Corporation (SIMO)

Allegro MicroSystems, Inc. and Silicon Motion Technology Corporation are both Semiconductors companies. Allegro MicroSystems, Inc. and Silicon Motion Technology Corporation are of similar size ($5.3B and $5.0B). Silicon Motion Technology Corporation trades at the lower P/E: 17.0× against 169×. Silicon Motion Technology Corporation grew revenue faster over the last twelve months: 104.4% against 27.9%. Silicon Motion Technology Corporation has the higher net margin (19.4% vs 3.07%) and the higher return on invested capital (15.4% vs 4.34%). Across the 21 metrics below, Silicon Motion Technology Corporation leads on 15 and Allegro MicroSystems, Inc. on 6.

Valuation

Metric ALGM SIMO Semiconductors median
P/E 169.38 16.99 36.98
P/S 5.01 3.30 6.03
P/B 5.03 5.14 3.87
Price to free cash flow 48.38 n/m 43.80
EV/EBITDA 35.23 14.76 20.84
EV/Sales 5.10 3.47 5.07
Earnings yield 0.59% 5.89% 1.13%
Free cash flow yield 2.07% (7.55%) 1.06%

Profitability

Metric ALGM SIMO Semiconductors median
Gross margin 47.91% 50.54% 52.21%
Operating margin 7.53% 21.30% 5.47%
Net margin 3.07% 19.36% 4.26%
Free cash flow margin 10.36% (24.90%) 5.02%
Return on equity 3.17% 0.00% 2.86%
Return on assets 2.19% 16.24% 2.03%
Return on invested capital 4.34% 15.39% 2.28%

Growth

Metric ALGM SIMO Semiconductors median
Revenue growth (TTM) 27.92% 104.40% 17.60%
EPS growth (last fiscal year) 79.49% 37.53% 27.66%
Revenue growth, 5-year CAGR 8.53% 10.42% 5.14%
Net income growth, 5-year CAGR 0.00% 8.99% 0.00%

Health

Metric ALGM SIMO Semiconductors median
Debt to equity 0.29 1.00 0.12
Current ratio 4.13 5.68 3.39
Net debt to EBITDA 1.32 (1.64) 0.53

Dividend

Metric ALGM SIMO Semiconductors median
Dividend yield — 1.62% 1.62%
Payout ratio — 0.28 0.38

Size

Metric ALGM SIMO Semiconductors median
Market cap 5.00b 5.30b 5.69b

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