Critical Contrast: Alimco Financial (OTCMKTS:ALMC) & Onsemi (NASDAQ:ON)

Alimco Financial (OTCMKTS:ALMC) and Onsemi (NASDAQ:ON) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.

Analyst Ratings

This is a summary of recent recommendations for Alimco Financial and Onsemi, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alimco Financial	0	0	0	0	N/A
Onsemi	1	9	16	0	2.58

Onsemi has a consensus target price of $90.28, suggesting a potential upside of 31.76%. Given Onsemi’s higher possible upside, analysts plainly believe Onsemi is more favorable than Alimco Financial.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alimco Financial	N/A	N/A	N/A
Onsemi	26.67%	28.86%	16.66%

Risk and Volatility

Alimco Financial has a beta of 0.1, indicating that its share price is 90% less volatile than the S&P 500. Comparatively, Onsemi has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500.

Valuation & Earnings

This table compares Alimco Financial and Onsemi’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alimco Financial	N/A	N/A	N/A	N/A	N/A
Onsemi	$8.25 billion	3.57	$2.18 billion	$4.90	13.98

Onsemi has higher revenue and earnings than Alimco Financial.

Insider and Institutional Ownership

0.2% of Alimco Financial shares are held by institutional investors. Comparatively, 97.7% of Onsemi shares are held by institutional investors. 35.1% of Alimco Financial shares are held by insiders. Comparatively, 0.3% of Onsemi shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Onsemi beats Alimco Financial on 8 of the 9 factors compared between the two stocks.

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.

About Onsemi

onsemi is engaged in disruptive innovations and also a supplier of power and analog semiconductors. The firm offers vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure, with a focus on automotive and industrial end-markets. It operates through the following segments: Power Solutions Group, Advanced Solutions Group, and Intelligent Sensing Group. The Power Solutions Group segment offers discrete, module, and semiconductor products that perform multiple application functions, including power switching, power conversion, signal conditioning, circuit protection, signal amplification, and voltage reference functions. The Advanced Solutions Group segment is involved in the designing and developing of analog, mixed-signal, advanced logic, ASSPs and ASICs, Wi-Fi and power solutions for a broad base of end-users in the automotive, consumer, computing, industrial, communications, medical and aerospace/defense markets. The Intelligent Sensing Group segment is focused on the designing and developing of CMOS and CCD image sensors, as well as proximity sensors, image signal processors, single photon detectors, inclu