Contrasting Meta Materials (NASDAQ:MMAT) and Allegro MicroSystems (NASDAQ:ALGM)

Meta Materials (NASDAQ:MMATGet Rating) and Allegro MicroSystems (NASDAQ:ALGMGet Rating) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, institutional ownership, valuation, dividends and profitability.

Risk & Volatility

Meta Materials has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500. Comparatively, Allegro MicroSystems has a beta of 1.59, meaning that its share price is 59% more volatile than the S&P 500.

Insider and Institutional Ownership

21.1% of Meta Materials shares are owned by institutional investors. Comparatively, 46.4% of Allegro MicroSystems shares are owned by institutional investors. 17.5% of Meta Materials shares are owned by company insiders. Comparatively, 26.9% of Allegro MicroSystems shares are owned by company 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 Meta Materials and Allegro MicroSystems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Meta Materials -999.55% -18.65% -14.64%
Allegro MicroSystems 16.38% 18.12% 14.67%

Valuation & Earnings

This table compares Meta Materials and Allegro MicroSystems’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Meta Materials $4.08 million 135.98 -$91.00 million -0.26 -7.19
Allegro MicroSystems $768.67 million 5.15 $119.41 million $0.61 34.10

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Meta Materials and Allegro MicroSystems, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Meta Materials 0 0 1 0 3.00
Allegro MicroSystems 0 0 8 0 3.00

Allegro MicroSystems has a consensus price target of $36.83, suggesting a potential upside of 77.08%. Given Allegro MicroSystems’ higher probable upside, analysts plainly believe Allegro MicroSystems is more favorable than Meta Materials.

Summary

Allegro MicroSystems beats Meta Materials on 12 of the 13 factors compared between the two stocks.

Meta Materials Company Profile (Get Rating)

Meta Materials Inc. invents, designs, develops, and manufactures various functional materials and nanocomposites. Its products include metaAIR, a laser glare protection eyewear; NANOWEB, a transparent conductive film; holoOPTIX, a holographic optical element; glucoWISE, a non-invasive glucose measurement device; and metaSURFACE, which allows an enhancement in signal to noise ratio of up to 40 times for magnetic resonance imaging scans. The company also develops and produces nano-optic structures and color-shifting foils that are used in authentication and brand protection applications in various markets, including banknotes, secure government documents, and commercial branding, as well as engages in the research, development, and manufacture of smart materials. Its customers are OEM providers in various industries, including aerospace, automotive, consumer electronics, communications, energy, banknote and brand security, and medical devices. The company was formerly known as Torchlight Energy Resources, Inc. and changed its name to Meta Materials Inc. in June 2021. Meta Materials Inc. was incorporated in 2007 and is headquartered in Dartmouth, Canada.

Allegro MicroSystems Company Profile (Get Rating)

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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