FormFactor (NASDAQ: FORM) and Photronics (NASDAQ:PLAB) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, dividends, analyst recommendations, risk, profitability and institutional ownership.
Volatility & Risk
FormFactor has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500. Comparatively, Photronics has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500.
This is a breakdown of current ratings and target prices for FormFactor and Photronics, as reported by MarketBeat.
||Strong Buy Ratings
FormFactor presently has a consensus price target of $19.07, suggesting a potential upside of 27.96%. Photronics has a consensus price target of $13.00, suggesting a potential upside of 51.16%. Given Photronics’ higher possible upside, analysts plainly believe Photronics is more favorable than FormFactor.
Insider & Institutional Ownership
84.4% of FormFactor shares are owned by institutional investors. Comparatively, 94.7% of Photronics shares are owned by institutional investors. 2.3% of FormFactor shares are owned by company insiders. Comparatively, 3.7% of Photronics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares FormFactor and Photronics’ net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Earnings and Valuation
This table compares FormFactor and Photronics’ gross revenue, earnings per share and valuation.
||Earnings Per Share
Photronics has higher revenue and earnings than FormFactor. Photronics is trading at a lower price-to-earnings ratio than FormFactor, indicating that it is currently the more affordable of the two stocks.
FormFactor beats Photronics on 8 of the 14 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.
Photronics, Inc. is a manufacturer of photomasks, which are photographic quartz plates containing microscopic images of electronic circuits. As of October 30, 2016, the Company operated principally from nine manufacturing facilities: two located in Europe, three in Taiwan, one in Korea and three in the United States. Photomasks are used in the manufacture of semiconductors and flat panel displays (FPDs), and are used as masters to transfer circuit patterns onto semiconductor wafers and flat panel substrates during the fabrication of integrated circuits (ICs), and a range of FPDs and other types of electrical and optical components. The Company offers reticle and photomask maintenance, including pellicle replacement, mask cleaning and re-certification, at all its sites across the world. Its products include Mature Binary, Advanced Binary Reticles, Phase Shift Masks-Embedded Attenuated Phase Shift Masks (EAPSM), Other Advanced Products and Large Area Masks.
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