Head to Head Comparison: Wolfspeed (NYSE:WOLF) vs. Alimco Financial (OTCMKTS:ALMC)

Wolfspeed (NYSE:WOLF) and Alimco Financial (OTCMKTS:ALMC) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.

Insider and Institutional Ownership

0.2% of Alimco Financial shares are held by institutional investors. 0.8% of Wolfspeed shares are held by company insiders. Comparatively, 35.1% of Alimco Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Wolfspeed and Alimco Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wolfspeed	$804.50 million	1.02	-$864.20 million	($5.95)	-1.08
Alimco Financial	N/A	N/A	N/A	N/A	N/A

Alimco Financial has lower revenue, but higher earnings than Wolfspeed.

Volatility & Risk

Wolfspeed has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500. Comparatively, Alimco Financial has a beta of 0.1, indicating that its stock price is 90% less volatile than the S&P 500.

Profitability

This table compares Wolfspeed and Alimco Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wolfspeed	-93.31%	-49.86%	-5.96%
Alimco Financial	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current recommendations and price targets for Wolfspeed and Alimco Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wolfspeed	2	10	4	0	2.13
Alimco Financial	0	0	0	0	0.00

Wolfspeed presently has a consensus target price of $17.21, indicating a potential upside of 167.30%. Given Wolfspeed’s stronger consensus rating and higher possible upside, analysts clearly believe Wolfspeed is more favorable than Alimco Financial.

About Wolfspeed

Wolfspeed, Inc. operates as a powerhouse semiconductor company focuses on silicon carbide and gallium nitride (GaN) technologies in Europe, Hong Kong, China, rest of Asia-Pacific, the United States, and internationally. It offers silicon carbide and GaN materials, including silicon carbide bare wafers, epitaxial wafers, and GaN epitaxial layers on silicon carbide wafers to manufacture products for RF, power, and other applications. The company also provides power devices, such as silicon carbide Schottky diodes, metal oxide semiconductor field effect transistors (MOSFETs), and power modules for customers and distributors to use in applications, including electric vehicles comprising charging infrastructure, server power supplies, solar inverters, uninterruptible power supplies, industrial power supplies, and other applications. In addition, it offers RF devices comprising GaN-based die, high-electron mobility transistors, monolithic microwave integrated circuits, and laterally diffused MOSFET power transistors for telecommunications infrastructure, military, and other commercial applications. The company was formerly known as Cree, Inc. and changed its name to Wolfspeed, Inc. in October 2021. Wolfspeed, Inc. was incorporated in 1987 and is headquartered in Durham, North Carolina.

About Alimco Financial

Alimco Financial Corporation focuses on business financing solutions. The company was formerly known as Alliance Semiconductor Corporation and changed its name to Alimco Financial Corporation in 2017. Alimco Financial Corporation was founded in 1985 and is based in West Palm Beach, Florida.