Altium vs Allegro.eu Which Is More Favorable?

Altium and Allegro are two leading companies in the field of electronic design automation, both offering powerful tools to aid in the development of printed circuit boards. Altium, based in Australia, is known for its user-friendly interface and extensive library of components. Meanwhile, Allegro, part of Cadence Design Systems, is popular for its advanced features and comprehensive design capabilities. Investors often compare the performance of these two stocks to determine the best investment opportunity in the rapidly growing tech industry.

Altium or Allegro.eu?

When comparing Altium and Allegro.eu, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Altium and Allegro.eu.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Altium has a dividend yield of 0.67%, while Allegro.eu has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Altium reports a 5-year dividend growth of 14.87% year and a payout ratio of 81.10%. On the other hand, Allegro.eu reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Altium P/E ratio at 68.93 and Allegro.eu's P/E ratio at 61.34. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Altium P/B ratio is 18.96 while Allegro.eu's P/B ratio is 3.79.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Altium has seen a 5-year revenue growth of 0.84%, while Allegro.eu's is 2.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Altium's ROE at 27.99% and Allegro.eu's ROE at 6.44%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are A$68.30 for Altium and zł34.46 for Allegro.eu. Over the past year, Altium's prices ranged from A$36.04 to A$68.33, with a yearly change of 89.59%. Allegro.eu's prices fluctuated between zł28.61 and zł41.16, with a yearly change of 43.88%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.