Nano Labs (NASDAQ:NA) versus Allegro MicroSystems (NASDAQ:ALGM) Financial Analysis

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

Insider and Institutional Ownership

50.7% of Nano Labs shares are owned by institutional investors. Comparatively, 56.5% of Allegro MicroSystems shares are owned by institutional investors. 0.4% 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.

Volatility and Risk

Nano Labs has a beta of 2.97, indicating that its stock price is 197% more volatile than the S&P 500. Comparatively, Allegro MicroSystems has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Nano Labs and Allegro MicroSystems, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nano Labs	1	0	0	0	1.00
Allegro MicroSystems	1	1	10	0	2.75

Allegro MicroSystems has a consensus price target of $45.00, suggesting a potential upside of 18.30%. Given Allegro MicroSystems’ stronger consensus rating and higher probable upside, analysts clearly believe Allegro MicroSystems is more favorable than Nano Labs.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nano Labs	N/A	N/A	N/A
Allegro MicroSystems	-1.57%	4.35%	2.92%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nano Labs	$5.65 million	15.88	-$15.75 million	N/A	N/A
Allegro MicroSystems	$725.01 million	9.72	-$73.01 million	($0.08)	-475.50

Nano Labs has higher earnings, but lower revenue than Allegro MicroSystems.

Summary

Allegro MicroSystems beats Nano Labs on 8 of the 12 factors compared between the two stocks.

About Nano Labs

Nano Labs Ltd operates as a fabless integrated circuit design company and product solution provider in the People's Republic of China and internationally. It develops high throughput computing and high-performance computing chips. The company also offers distributed computing and storage solutions, smart network interface cards, and vision computing chips, as well as distributed rendering technology. In addition, it engages in the research and development of software. Its customers include enterprises and individual buyers. The company was founded in 2019 and is headquartered in Hangzhou, the People's Republic of China.

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.