ALGM vs. SMTC
ALGM (Allegro MicroSystems, Inc.) and SMTC (Semtech Corporation) are both stocks. Both operate in the Semiconductors industry within the Technology sector. Over the past 5 years, ALGM returned 15.15%/yr vs 19.77%/yr for SMTC. A 0.59 correlation means they provide meaningful diversification when combined.
Performance
ALGM vs. SMTC - Performance Comparison
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Returns By Period
In the year-to-date period, ALGM achieves a 110.46% return, which is significantly lower than SMTC's 121.58% return.
ALGM
- 1D
- -9.84%
- 1M
- 20.83%
- YTD
- 110.46%
- 6M
- 102.26%
- 1Y
- 74.15%
- 3Y*
- 10.41%
- 5Y*
- 15.15%
- 10Y*
- —
SMTC
- 1D
- -6.55%
- 1M
- 4.15%
- YTD
- 121.58%
- 6M
- 115.10%
- 1Y
- 297.66%
- 3Y*
- 89.17%
- 5Y*
- 19.77%
- 10Y*
- 21.57%
ALGM vs. SMTC - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
ALGM Allegro MicroSystems, Inc. | 110.46% | 20.68% | -27.78% | 0.83% | -17.03% | 35.71% | 37.42% |
SMTC Semtech Corporation | 121.58% | 19.14% | 182.29% | -23.63% | -67.74% | 23.36% | 37.43% |
Correlation
The correlation between ALGM and SMTC is 0.57, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.57 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.55 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.60 |
Correlation (All Time) Calculated using the full available price history since Oct 29, 2020 | 0.59 |
The correlation between ALGM and SMTC has been stable across timeframes, ranging from 0.55 to 0.60 - a consistent structural relationship.
Fundamentals
ALGM:
-$0.08
SMTC:
-$0.45
ALGM:
11.58
SMTC:
13.84
ALGM:
$890.10M
SMTC:
$1.05B
ALGM:
$411.97M
SMTC:
$541.32M
ALGM:
$60.02M
SMTC:
$172.00M
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Return for Risk
ALGM vs. SMTC — Risk / Return Rank
ALGM
SMTC
ALGM vs. SMTC - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Allegro MicroSystems, Inc. (ALGM) and Semtech Corporation (SMTC). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| ALGM | SMTC | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -3.25 | ||
| Sortino ratioReturn per unit of downside risk | -2.05 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.50 | -0.26 |
| Calmar ratioReturn relative to maximum drawdown | 1.90 | 11.24 | -9.34 |
| Martin ratioReturn relative to average drawdown | 3.97 | 39.68 | -35.70 |
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Drawdowns
ALGM vs. SMTC - Drawdown Comparison
The maximum ALGM drawdown since its inception was -68.65%, smaller than the maximum SMTC drawdown of -85.40%. Use the drawdown chart below to compare losses from any high point for ALGM and SMTC.
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Drawdown Indicators
| ALGM | SMTC | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -68.65% | -85.40% | +16.75% |
Max Drawdown (1Y)Largest decline over 1 year | -39.22% | -26.68% | -12.54% |
Max Drawdown (3Y)Largest decline over 3 years | -68.65% | -68.45% | -0.20% |
Max Drawdown (5Y)Largest decline over 5 years | -68.65% | -85.40% | +16.75% |
Max Drawdown (10Y)Largest decline over 10 years | — | -85.40% | — |
Current DrawdownCurrent decline from peak | -9.84% | -6.55% | -3.29% |
Average DrawdownAverage peak-to-trough decline | -31.75% | -47.85% | +16.10% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 18.72% | 7.54% | +11.18% |
Volatility
ALGM vs. SMTC - Volatility Comparison
Allegro MicroSystems, Inc. (ALGM) and Semtech Corporation (SMTC) have volatilities of 30.06% and 29.48%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ALGM | SMTC | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 30.06% | 29.48% | +0.58% |
Volatility (6M)Calculated over the trailing 6-month period | 48.81% | 51.15% | -2.34% |
Volatility (1Y)Calculated over the trailing 1-year period | 57.38% | 65.90% | -8.52% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 51.16% | 63.45% | -12.29% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 52.42% | 54.06% | -1.64% |
Dividends
ALGM vs. SMTC - Dividend Comparison
Neither ALGM nor SMTC has paid dividends to shareholders.
Financials
ALGM vs. SMTC - Financials Comparison
This section allows you to compare key financial metrics between Allegro MicroSystems, Inc. and Semtech Corporation. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
ALGM vs. SMTC - Profitability Comparison
ALGM - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Allegro MicroSystems, Inc. reported a gross profit of 114.28M and revenue of 243.19M. Therefore, the gross margin over that period was 47.0%.
SMTC - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Semtech Corporation reported a gross profit of 138.10M and revenue of 274.40M. Therefore, the gross margin over that period was 50.3%.
ALGM - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Allegro MicroSystems, Inc. reported an operating income of 5.41M and revenue of 243.19M, resulting in an operating margin of 2.2%.
SMTC - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Semtech Corporation reported an operating income of 30.80M and revenue of 274.40M, resulting in an operating margin of 11.2%.
ALGM - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Allegro MicroSystems, Inc. reported a net income of -16.49M and revenue of 243.19M, resulting in a net margin of -6.8%.
SMTC - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Semtech Corporation reported a net income of -29.80M and revenue of 274.40M, resulting in a net margin of -10.9%.
Frequently Asked Questions
ALGM and SMTC have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ALGM has higher volatility (30.06%) compared to SMTC (29.48%). In terms of maximum drawdown, ALGM dropped -68.65% vs SMTC's -85.40%.
SMTC currently has the higher Sharpe Ratio (4.55 vs 1.30), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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