FormFactor (NASDAQ: FORM) and Ultratech (NASDAQ:UTEK) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, analyst recommendations, risk and institutional ownership.
Insider and Institutional Ownership
84.4% of FormFactor shares are held by institutional investors. Comparatively, 92.7% of Ultratech shares are held by institutional investors. 2.3% of FormFactor shares are held by company insiders. Comparatively, 5.9% of Ultratech shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
FormFactor has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500. Comparatively, Ultratech has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500.
This table compares FormFactor and Ultratech’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 Ultratech’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|FormFactor||$383.88 million||2.86||-$6.55 million||$0.26||57.89|
Ultratech has lower revenue, but higher earnings than FormFactor. Ultratech is trading at a lower price-to-earnings ratio than FormFactor, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and recommmendations for FormFactor and Ultratech, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
FormFactor currently has a consensus price target of $18.40, suggesting a potential upside of 22.26%. Ultratech has a consensus price target of $28.88, suggesting a potential downside of 4.47%. Given FormFactor’s stronger consensus rating and higher probable upside, analysts clearly believe FormFactor is more favorable than Ultratech.
FormFactor beats Ultratech on 7 of the 11 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.
Ultratech, Inc. (Ultratech) develops, manufactures and markets photolithography, laser thermal processing and inspection equipment. The Company operates through the manufacture and distribution of capital equipment to manufacturers of integrated circuits and nanotechnology components segment. The Company serves manufacturers of semiconductor devices, including packaging processes and various nanotechnology components such as laser diodes, high-brightness light emitting diodes (HBLEDs) and micro-electro-mechanical systems (MEMS), as well as atomic layer deposition systems (ALD) for customers located throughout the world. It has operations in North America, Europe, Singapore, Japan, Taiwan, Korea and the rest of Asia. The Company supplies step-and-repeat photolithography systems based on one-to-one (1X) imaging technology to customers located throughout North America, Europe and Asia.
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