SMTC vs. ALGM
SMTC (Semtech Corporation) and ALGM (Allegro MicroSystems, Inc.) are both stocks. Both operate in the Semiconductors industry within the Technology sector. Over the past 5 years, SMTC returned 19.77%/yr vs 15.15%/yr for ALGM. A 0.59 correlation means they provide meaningful diversification when combined.
Performance
SMTC vs. ALGM - Performance Comparison
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Returns By Period
In the year-to-date period, SMTC achieves a 121.58% return, which is significantly higher than ALGM's 110.46% return.
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
- 1D
- -9.84%
- 1M
- 20.83%
- YTD
- 110.46%
- 6M
- 102.26%
- 1Y
- 74.15%
- 3Y*
- 10.41%
- 5Y*
- 15.15%
- 10Y*
- —
SMTC vs. ALGM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
SMTC Semtech Corporation | 121.58% | 19.14% | 182.29% | -23.63% | -67.74% | 23.36% | 37.43% |
ALGM Allegro MicroSystems, Inc. | 110.46% | 20.68% | -27.78% | 0.83% | -17.03% | 35.71% | 37.42% |
Correlation
The correlation between SMTC and ALGM 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 SMTC and ALGM has been stable across timeframes, ranging from 0.55 to 0.60 - a consistent structural relationship.
Fundamentals
SMTC:
-$0.45
ALGM:
-$0.08
SMTC:
13.84
ALGM:
11.58
SMTC:
$1.05B
ALGM:
$890.10M
SMTC:
$541.32M
ALGM:
$411.97M
SMTC:
$172.00M
ALGM:
$60.02M
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Return for Risk
SMTC vs. ALGM — Risk / Return Rank
SMTC
ALGM
SMTC vs. ALGM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Semtech Corporation (SMTC) and Allegro MicroSystems, Inc. (ALGM). 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.
| SMTC | ALGM | 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 | 1.50 | 1.24 | +0.26 |
| Calmar ratioReturn relative to maximum drawdown | 11.24 | 1.90 | +9.34 |
| Martin ratioReturn relative to average drawdown | 39.68 | 3.97 | +35.70 |
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Drawdowns
SMTC vs. ALGM - Drawdown Comparison
The maximum SMTC drawdown since its inception was -85.40%, which is greater than ALGM's maximum drawdown of -68.65%. Use the drawdown chart below to compare losses from any high point for SMTC and ALGM.
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Drawdown Indicators
| SMTC | ALGM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -85.40% | -68.65% | -16.75% |
Max Drawdown (1Y)Largest decline over 1 year | -26.68% | -39.22% | +12.54% |
Max Drawdown (3Y)Largest decline over 3 years | -68.45% | -68.65% | +0.20% |
Max Drawdown (5Y)Largest decline over 5 years | -85.40% | -68.65% | -16.75% |
Max Drawdown (10Y)Largest decline over 10 years | -85.40% | — | — |
Current DrawdownCurrent decline from peak | -6.55% | -9.84% | +3.29% |
Average DrawdownAverage peak-to-trough decline | -47.85% | -31.75% | -16.10% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 7.54% | 18.72% | -11.18% |
Volatility
SMTC vs. ALGM - Volatility Comparison
Semtech Corporation (SMTC) and Allegro MicroSystems, Inc. (ALGM) have volatilities of 29.48% and 30.06%, 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
| SMTC | ALGM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 29.48% | 30.06% | -0.58% |
Volatility (6M)Calculated over the trailing 6-month period | 51.15% | 48.81% | +2.34% |
Volatility (1Y)Calculated over the trailing 1-year period | 65.90% | 57.38% | +8.52% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 63.45% | 51.16% | +12.29% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 54.06% | 52.42% | +1.64% |
Dividends
SMTC vs. ALGM - Dividend Comparison
Neither SMTC nor ALGM has paid dividends to shareholders.
Financials
SMTC vs. ALGM - Financials Comparison
This section allows you to compare key financial metrics between Semtech Corporation and Allegro MicroSystems, Inc.. 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
SMTC vs. ALGM - Profitability Comparison
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 - 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 - 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 - 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 - 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%.
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%.
Frequently Asked Questions
SMTC and ALGM 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, SMTC dropped -85.40% vs ALGM's -68.65%.
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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