FormFactor (NASDAQ: FORM) and Cohu (NASDAQ:COHU) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.
Institutional & Insider Ownership
87.4% of FormFactor shares are owned by institutional investors. Comparatively, 83.9% of Cohu shares are owned by institutional investors. 2.8% of FormFactor shares are owned by insiders. Comparatively, 6.0% of Cohu shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares FormFactor and Cohu’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares FormFactor and Cohu’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|FormFactor||$519.99 million||2.20||$61.41 million||($0.11)||-143.64|
|Cohu||$314.92 million||1.78||$37.41 million||$0.69||29.03|
FormFactor has higher revenue and earnings than Cohu. FormFactor is trading at a lower price-to-earnings ratio than Cohu, indicating that it is currently the more affordable of the two stocks.
Cohu pays an annual dividend of $0.24 per share and has a dividend yield of 1.2%. FormFactor does not pay a dividend. Cohu pays out 34.8% of its earnings in the form of a dividend.
Volatility and Risk
FormFactor has a beta of 1.63, meaning that its stock price is 63% more volatile than the S&P 500. Comparatively, Cohu has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for FormFactor and Cohu, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
FormFactor currently has a consensus target price of $17.14, indicating a potential upside of 8.50%. Cohu has a consensus target price of $23.67, indicating a potential upside of 18.16%. Given Cohu’s higher possible upside, analysts plainly believe Cohu is more favorable than FormFactor.
FormFactor beats Cohu on 10 of the 16 factors compared between the two stocks.
FormFactor, Inc. is a provider of test and measurement solutions. The Company’s segments include the Probe Cards segment and Systems segment. The Company designs, manufactures and sells multiple product lines, including probe cards, analytical probes, probe stations, integrated measurement systems, thermal sub-systems, reliability test systems, and related services. Its products provide electrical information from a range of semiconductor and electro-optical devices and integrated circuits (devices) from development to production. Probe Cards segment consists of probe card products and analytical probes. Systems segment consists of wafer probing, thermal and reliability products to enable precision on-wafer measurement of integrated circuits. Systems products are used in the early phases of the development and characterization of semiconductor processes.
Cohu, Inc. is a supplier of semiconductor test and inspection handlers, micro-electro mechanical system (MEMS) test modules, test contactors and thermal sub-systems used by global semiconductor manufacturers and test subcontractors. It develops, manufactures, sells and services a line of equipment capable of handling a range of integrated circuits and light-emitting diodes. It operates through semiconductor equipment segment. It offers products for the pick-and-place, gravity-feed, test-in-strip and turret handling, MEMS, burn-in and system-level test markets. It sells various products, including Delta MATRiX, Delta Pyramid, Delta Eclipse, Delta LinX, Rasco SO1000, Rasco SO2000, Rasco Saturn and Jupiter, Rasco Jaguar, Ismeca NY32, Ismeca NY20 and Delta Fusion HD. Its manufacturing operations are located in Malacca, Malaysia (handlers); Poway, California (thermal subsystems); Laguna, the Philippines (kits and contactors); Kolbermoor, Germany (handlers), and Osaka, Japan (contactors).
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