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ALGM vs FROG

ALGM
Allegro MicroSystems, Inc.
BEARISH
Price
$31.13
Market Cap
$5.77B
Sector
Technology
AI Confidence
85%
FROG
JFrog Ltd.
NEUTRAL
Price
$44.46
Market Cap
$5.39B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
ALGM
--
FROG
--
Forward P/E
ALGM
33.05
FROG
40.59
P/B Ratio
ALGM
5.99
FROG
5.99
P/S Ratio
ALGM
6.87
FROG
10.13
EV/EBITDA
ALGM
82.13
FROG
-75.83

Profitability

Gross Margin
ALGM
45.13%
FROG
76.79%
Operating Margin
ALGM
4.18%
FROG
-13.68%
Profit Margin
ALGM
-1.57%
FROG
-13.5%
ROE
ALGM
-1.36%
FROG
-8.65%
ROA
ALGM
0.28%
FROG
-4.32%

Growth

Revenue Growth
ALGM
28.9%
FROG
25.2%
Earnings Growth
ALGM
--
FROG
--

Financial Health

Debt/Equity
ALGM
0.32
FROG
0.01
Current Ratio
ALGM
3.65
FROG
2.14
Quick Ratio
ALGM
1.81
FROG
2.02

Dividends

Dividend Yield
ALGM
--
FROG
--
Payout Ratio
ALGM
0.0%
FROG
0.0%

AI Verdict

ALGM BEARISH

ALGM's deterministic health scores signal significant financial distress: the Piotroski F-Score of 2/9 indicates weak operational and financial health, while the absence of an Altman Z-Score raises concerns about bankruptcy risk. Despite strong revenue growth (28.9% YoY) and positive earnings momentum (114.3% YoY EPS growth), the company reports negative profit margins (-1.57%) and ROE (-1.36%), undermining profitability sustainability. Insider selling totaling $1.65M over six months and a bearish technical trend further erode confidence. The stock trades at a premium valuation (Forward P/E: 33.05, Price/Sales: 6.87) relative to its weak fundamentals, suggesting overvaluation.

Strengths
Strong revenue growth of 28.9% YoY indicates market expansion and demand for products
Positive year-over-year EPS growth of 114.3% reflects improving earnings momentum
Healthy gross margin of 45.13% suggests strong pricing power and cost control
Risks
Piotroski F-Score of 2/9 indicates severe financial and operational weaknesses
Negative profit margin (-1.57%) and ROE (-1.36%) suggest poor profitability and capital efficiency
Insider selling of $1.65M in last 6 months signals lack of confidence from leadership
FROG NEUTRAL

FROG presents a dichotomy between strong growth fundamentals and concerning internal sentiment. The company maintains a stable financial health profile with a Piotroski F-Score of 5/9 and a pristine balance sheet (Debt/Equity of 0.01), though it remains GAAP unprofitable with a -13.50% profit margin. While revenue growth is robust at 25.20% and earnings consistently beat estimates, the bearish insider signal (CEO/CFO selling) and a 0/100 technical trend offset the 'Strong Buy' analyst consensus. The stock is currently valued as a high-growth asset, trading at a premium P/S ratio of 10.13.

Strengths
Strong top-line growth with 25.20% YoY revenue increase
Excellent gross margins of 76.79% indicating high scalability
Negligible debt levels (Debt/Equity 0.01) and healthy liquidity (Current Ratio 2.14)
Risks
Negative net profit margins (-13.50%) and ROE (-8.65%)
Aggressive insider selling, including transactions by the CEO and CFO
High valuation multiples (P/S of 10.13) making it sensitive to growth decelerations

Compare Another Pair

ALGM vs FROG: Head-to-Head Comparison

This page compares Allegro MicroSystems, Inc. (ALGM) and JFrog Ltd. (FROG) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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