PXLW vs ALGM

For growth investors, Allegro MicroSystems, Inc.

(ALGM) is the stronger pick with -30. 9% revenue growth year-over-year, versus -98. 4% for Pixelworks, Inc. (PXLW). Analysts rate Pixelworks, Inc. (PXLW) a "Buy" — based on 7 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

Over the past 5 years, Allegro MicroSystems, Inc.

(ALGM) delivered a total return of +93. 3%, compared to -86. 0% for Pixelworks, Inc. (PXLW). Over 10 years, the gap is even starker: ALGM returned +170. 8% versus PXLW's -73. 6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Pixelworks, Inc.

(PXLW) is the lower-risk stock at 1. 83β versus Allegro MicroSystems, Inc. 's 2. 43β — meaning ALGM is approximately 32% more volatile than PXLW relative to the S&P 500. On balance sheet safety, Pixelworks, Inc. (PXLW) carries a lower debt/equity ratio of 4% versus 40% for Allegro MicroSystems, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Allegro MicroSystems, Inc.

(ALGM) is pulling ahead at -30. 9% versus -98. 4% for Pixelworks, Inc. (PXLW). On earnings-per-share growth, the picture is similar: Pixelworks, Inc. grew EPS 74. 5% year-over-year, compared to -150. 0% for Allegro MicroSystems, Inc.. Over a 3-year CAGR, ALGM leads at -1. 9% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Allegro MicroSystems, Inc.

(ALGM) is the more profitable company, earning -10. 1% net margin versus -1190. 3% for Pixelworks, Inc. — meaning it keeps -10. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ALGM leads at -2. 7% versus -1667. 5% for PXLW. At the gross margin level — before operating expenses — PXLW leads at 85. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

Analyst consensus price targets imply the most upside for PXLW: 167.

4% to $15. 00.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, Allegro MicroSystems, Inc.

(ALGM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+170. 8% 10Y return). Pixelworks, Inc. (PXLW) carries a higher beta of 1. 83 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (ALGM: +170. 8%, PXLW: -73. 6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.