ALGM vs. STM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ALGM and STM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
STM’s market capitalization of 28.89 billion USD is significantly greater than ALGM’s 6.64 billion USD, highlighting its more substantial market valuation.
With betas of 1.67 for ALGM and 1.23 for STM, both stocks show similar sensitivity to overall market movements.
STM is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. ALGM, on the other hand, is a domestic entity.
| Symbol | ALGM | STM |
|---|---|---|
| Company Name | Allegro MicroSystems, Inc. | STMicroelectronics N.V. |
| Country | US | NL |
| Sector | Technology | Technology |
| Industry | Semiconductors | Semiconductors |
| CEO | Michael C. Doogue | Jean-Marc Chery |
| Price | 35.93 USD | 32.29 USD |
| Market Cap | 6.64 billion USD | 28.89 billion USD |
| Beta | 1.67 | 1.23 |
| Exchange | NASDAQ | NYSE |
| IPO Date | October 29, 2020 | December 8, 1994 |
| ADR | No | Yes |
Historical Performance
This chart compares the performance of ALGM and STM by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
ALGM
-7.47%
Semiconductors Industry
- Max
- 41.84%
- Q3
- 15.81%
- Median
- 6.31%
- Q1
- -5.54%
- Min
- -30.12%
ALGM has a negative Return on Equity of -7.47%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
STM
6.31%
Semiconductors Industry
- Max
- 41.84%
- Q3
- 15.81%
- Median
- 6.31%
- Q1
- -5.54%
- Min
- -30.12%
STM’s Return on Equity of 6.31% is on par with the norm for the Semiconductors industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
ALGM
-1.28%
Semiconductors Industry
- Max
- 30.91%
- Q3
- 11.34%
- Median
- 4.08%
- Q1
- -2.17%
- Min
- -19.59%
ALGM has a negative Return on Invested Capital of -1.28%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.
STM
4.08%
Semiconductors Industry
- Max
- 30.91%
- Q3
- 11.34%
- Median
- 4.08%
- Q1
- -2.17%
- Min
- -19.59%
STM’s Return on Invested Capital of 4.08% is in line with the norm for the Semiconductors industry, reflecting a standard level of efficiency in generating profits from its capital base.
Net Profit Margin
ALGM
-10.07%
Semiconductors Industry
- Max
- 51.69%
- Q3
- 19.67%
- Median
- 8.56%
- Q1
- -5.44%
- Min
- -38.60%
ALGM has a negative Net Profit Margin of -10.07%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
STM
8.94%
Semiconductors Industry
- Max
- 51.69%
- Q3
- 19.67%
- Median
- 8.56%
- Q1
- -5.44%
- Min
- -38.60%
STM’s Net Profit Margin of 8.94% is aligned with the median group of its peers in the Semiconductors industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
ALGM
-2.73%
Semiconductors Industry
- Max
- 58.03%
- Q3
- 22.12%
- Median
- 8.40%
- Q1
- -3.73%
- Min
- -36.14%
ALGM has a negative Operating Profit Margin of -2.73%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
STM
8.89%
Semiconductors Industry
- Max
- 58.03%
- Q3
- 22.12%
- Median
- 8.40%
- Q1
- -3.73%
- Min
- -36.14%
STM’s Operating Profit Margin of 8.89% is around the midpoint for the Semiconductors industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ALGM | STM |
|---|---|---|
| Return on Equity (TTM) | -7.47% | 6.31% |
| Return on Assets (TTM) | -5.14% | 4.42% |
| Return on Invested Capital (TTM) | -1.28% | 4.08% |
| Net Profit Margin (TTM) | -10.07% | 8.94% |
| Operating Profit Margin (TTM) | -2.73% | 8.89% |
| Gross Profit Margin (TTM) | 44.35% | 37.48% |
Financial Strength
Current Ratio
ALGM
4.30
Semiconductors Industry
- Max
- 9.10
- Q3
- 5.23
- Median
- 3.09
- Q1
- 2.49
- Min
- 1.02
ALGM’s Current Ratio of 4.30 aligns with the median group of the Semiconductors industry, indicating that its short-term liquidity is in line with its sector peers.
STM
3.05
Semiconductors Industry
- Max
- 9.10
- Q3
- 5.23
- Median
- 3.09
- Q1
- 2.49
- Min
- 1.02
STM’s Current Ratio of 3.05 aligns with the median group of the Semiconductors industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
ALGM
0.37
Semiconductors Industry
- Max
- 0.97
- Q3
- 0.46
- Median
- 0.21
- Q1
- 0.05
- Min
- 0.00
ALGM’s Debt-to-Equity Ratio of 0.37 is typical for the Semiconductors industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
STM
0.16
Semiconductors Industry
- Max
- 0.97
- Q3
- 0.46
- Median
- 0.21
- Q1
- 0.05
- Min
- 0.00
STM’s Debt-to-Equity Ratio of 0.16 is typical for the Semiconductors industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
ALGM
-1.08
Semiconductors Industry
- Max
- 36.25
- Q3
- 29.12
- Median
- 7.01
- Q1
- -1.22
- Min
- -18.18
ALGM has a negative Interest Coverage Ratio of -1.08. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
STM
24.33
Semiconductors Industry
- Max
- 36.25
- Q3
- 29.12
- Median
- 7.01
- Q1
- -1.22
- Min
- -18.18
STM’s Interest Coverage Ratio of 24.33 is positioned comfortably within the norm for the Semiconductors industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ALGM | STM |
|---|---|---|
| Current Ratio (TTM) | 4.30 | 3.05 |
| Quick Ratio (TTM) | 2.66 | 2.24 |
| Debt-to-Equity Ratio (TTM) | 0.37 | 0.16 |
| Debt-to-Asset Ratio (TTM) | 0.24 | 0.12 |
| Net Debt-to-EBITDA Ratio (TTM) | -26.81 | 0.38 |
| Interest Coverage Ratio (TTM) | -1.08 | 24.33 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ALGM and STM. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ALGM
0.00%
Semiconductors Industry
- Max
- 6.48%
- Q3
- 0.93%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ALGM currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
STM
1.03%
Semiconductors Industry
- Max
- 6.48%
- Q3
- 0.93%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 1.03%, STM offers a more attractive income stream than most of its peers in the Semiconductors industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
ALGM
0.00%
Semiconductors Industry
- Max
- 204.29%
- Q3
- 31.85%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ALGM has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
STM
21.80%
Semiconductors Industry
- Max
- 204.29%
- Q3
- 31.85%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
STM’s Dividend Payout Ratio of 21.80% is within the typical range for the Semiconductors industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ALGM | STM |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.03% |
| Dividend Payout Ratio (TTM) | 0.00% | 21.80% |
Valuation
Price-to-Earnings Ratio
ALGM
-90.63
Semiconductors Industry
- Max
- 86.15
- Q3
- 47.38
- Median
- 27.87
- Q1
- 18.89
- Min
- 4.73
ALGM has a negative P/E Ratio of -90.63. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.
STM
27.37
Semiconductors Industry
- Max
- 86.15
- Q3
- 47.38
- Median
- 27.87
- Q1
- 18.89
- Min
- 4.73
STM’s P/E Ratio of 27.37 is within the middle range for the Semiconductors industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
ALGM
-1.44
Semiconductors Industry
- Max
- 4.73
- Q3
- 2.80
- Median
- 1.11
- Q1
- 0.68
- Min
- 0.01
The Forward PEG Ratio is often not a primary valuation metric in the Semiconductors industry.
STM
0.54
Semiconductors Industry
- Max
- 4.73
- Q3
- 2.80
- Median
- 1.11
- Q1
- 0.68
- Min
- 0.01
The Forward PEG Ratio is often not a primary valuation metric in the Semiconductors industry.
Price-to-Sales Ratio
ALGM
9.16
Semiconductors Industry
- Max
- 21.96
- Q3
- 10.21
- Median
- 4.45
- Q1
- 2.32
- Min
- 0.48
ALGM’s P/S Ratio of 9.16 aligns with the market consensus for the Semiconductors industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
STM
2.34
Semiconductors Industry
- Max
- 21.96
- Q3
- 10.21
- Median
- 4.45
- Q1
- 2.32
- Min
- 0.48
STM’s P/S Ratio of 2.34 aligns with the market consensus for the Semiconductors industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio
ALGM
7.11
Semiconductors Industry
- Max
- 13.12
- Q3
- 6.49
- Median
- 3.31
- Q1
- 1.74
- Min
- 0.23
ALGM’s P/B Ratio of 7.11 is in the upper tier for the Semiconductors industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
STM
1.70
Semiconductors Industry
- Max
- 13.12
- Q3
- 6.49
- Median
- 3.31
- Q1
- 1.74
- Min
- 0.23
STM’s P/B Ratio of 1.70 is in the lower quartile for the Semiconductors industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | ALGM | STM |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | -90.63 | 27.37 |
| Forward PEG Ratio (TTM) | -1.44 | 0.54 |
| Price-to-Sales Ratio (P/S, TTM) | 9.16 | 2.34 |
| Price-to-Book Ratio (P/B, TTM) | 7.11 | 1.70 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 302.55 | 122.94 |
| EV-to-EBITDA (TTM) | -819.02 | 10.40 |
| EV-to-Sales (TTM) | 9.47 | 2.43 |