ALGM vs. SMTC

Last updated Jun 3, 2026

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 13.88%/yr vs 20.68%/yr for SMTC. A 0.59 correlation means they provide meaningful diversification when combined.

Performance

ALGM vs. SMTC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Allegro MicroSystems, Inc. (ALGM) and Semtech Corporation (SMTC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ALGM achieves a 90.79% return, which is significantly lower than SMTC's 126.12% return.

ALGM

• 1D: 6.79%
• 1M: 2.76%
• YTD: 90.79%
• 6M: 89.82%
• 1Y: 94.78%
• 3Y*: 8.43%
• 5Y*: 13.88%
• 10Y*: —

SMTC

• 1D: 11.40%
• 1M: 54.56%
• YTD: 126.12%
• 6M: 128.79%
• 1Y: 344.35%
• 3Y*: 94.60%
• 5Y*: 20.68%
• 10Y*: 21.43%

*Multi-year figures are annualized to reflect compound growth (CAGR)

ALGM vs. SMTC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
ALGM Allegro MicroSystems, Inc.	90.79%	20.68%	-27.78%	0.83%	-17.03%	35.71%	50.62%
SMTC Semtech Corporation	126.12%	19.14%	182.29%	-23.63%	-67.74%	23.36%	30.53%

Correlation

The correlation between ALGM and SMTC is 0.56, 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	0.56
Correlation (3Y) Calculated over the trailing 3-year period	0.54
Correlation (5Y) Calculated over the trailing 5-year period	0.59
Correlation (All Time) Calculated using the full available price history since Oct 30, 2020	0.59

The correlation between ALGM and SMTC has been stable across timeframes, ranging from 0.54 to 0.59 - a consistent structural relationship.

Fundamentals

EPS ALGM : -$0.08 SMTC : -$0.45
PS Ratio ALGM : 10.49 SMTC : 14.12
Total Revenue (TTM) ALGM : $890.10M SMTC : $1.05B
Gross Profit (TTM) ALGM : $411.97M SMTC : $541.32M
EBITDA (TTM) ALGM : $60.02M SMTC : $172.00M

Return for Risk

ALGM vs. SMTC — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ALGM

ALGM Risk / Return Rank: 80
ALGM Sharpe Ratio Rank: 85
ALGM Sortino Ratio Rank: 83
ALGM Omega Ratio Rank: 78
ALGM Calmar Ratio Rank: 78
ALGM Martin Ratio Rank: 76

SMTC

SMTC Risk / Return Rank: 97
SMTC Sharpe Ratio Rank: 99
SMTC Sortino Ratio Rank: 97
SMTC Omega Ratio Rank: 95
SMTC Calmar Ratio Rank: 98
SMTC Martin Ratio Rank: 99

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

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.

	ALGM	SMTC	Difference
Sharpe ratio Return per unit of total volatility	1.80	5.49	-3.69
Sortino ratio Return per unit of downside risk	2.56	4.62	-2.07
Omega ratio Gain probability vs. loss probability	1.30	1.58	-0.28
Calmar ratio Return relative to maximum drawdown	2.51	12.98	-10.47
Martin ratio Return relative to average drawdown	5.29	46.88	-41.59
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ALGM vs. SMTC - Sharpe Ratio Comparison

The current ALGM Sharpe Ratio is 1.80, which is lower than the SMTC Sharpe Ratio of 5.49. The chart below compares the historical Sharpe Ratios of ALGM and SMTC, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	ALGM	SMTC	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.80	5.49	-3.69
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.28	0.33	-0.05
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.40	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.40	0.24	+0.16

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.

Drawdown Indicators

	ALGM	SMTC	Difference
Max Drawdown Largest 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 Drawdown Current decline from peak	-4.53%	0.00%	-4.53%
Average Drawdown Average peak-to-trough decline	-32.02%	-47.93%	+15.91%
Ulcer Index Depth and duration of drawdowns from previous peaks	18.62%	7.39%	+11.23%

Volatility

ALGM vs. SMTC - Volatility Comparison

The current volatility for Allegro MicroSystems, Inc. (ALGM) is 20.48%, while Semtech Corporation (SMTC) has a volatility of 23.42%. This indicates that ALGM experiences smaller price fluctuations and is considered to be less risky than SMTC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ALGM	SMTC	Difference
Volatility (1M) Calculated over the trailing 1-month period	20.48%	23.42%	-2.94%
Volatility (6M) Calculated over the trailing 6-month period	43.40%	48.05%	-4.65%
Volatility (1Y) Calculated over the trailing 1-year period	53.03%	63.22%	-10.19%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	49.92%	62.70%	-12.78%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	51.46%	53.63%	-2.17%

Dividends

ALGM vs. SMTC - Dividend Comparison

Neither ALGM nor SMTC has paid dividends to shareholders.

Tickers have no history of dividend payments

Financials

ALGM vs. SMTC - Profitability Comparison

The chart below illustrates the profitability comparison between Allegro MicroSystems, Inc. and Semtech Corporation over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

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

Can I hold both ALGM and SMTC in my portfolio?

ALGM and SMTC have a correlation of 0.56, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ALGM or SMTC?

SMTC has higher volatility (23.42%) compared to ALGM (20.48%). In terms of maximum drawdown, ALGM dropped -68.65% vs SMTC's -85.40%.

Which has better risk-adjusted returns?

SMTC currently has the higher Sharpe Ratio (5.49 vs 1.80), 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.