Head-To-Head Comparison: FormFactor (NASDAQ:FORM) & Soitec (OTCMKTS:SLOIF)

Soitec (OTCMKTS:SLOIF) and FormFactor (NASDAQ:FORM) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, dividends, risk, profitability and earnings.

Volatility and Risk

Soitec has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500. Comparatively, FormFactor has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500.

Profitability

This table compares Soitec and FormFactor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Soitec	N/A	N/A	N/A
FormFactor	5.38%	5.10%	4.26%

Analyst Ratings

This is a summary of current ratings and price targets for Soitec and FormFactor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Soitec	1	0	0	0	1.00
FormFactor	0	5	4	1	2.60

FormFactor has a consensus price target of $64.13, indicating a potential downside of 13.34%. Given FormFactor’s stronger consensus rating and higher probable upside, analysts clearly believe FormFactor is more favorable than Soitec.

Insider and Institutional Ownership

98.8% of FormFactor shares are held by institutional investors. 1.0% of FormFactor shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Soitec and FormFactor”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Soitec	$937.30 million	1.32	$98.66 million	N/A	N/A
FormFactor	$763.60 million	7.51	$69.61 million	$0.52	142.31

Soitec has higher revenue and earnings than FormFactor.

Summary

FormFactor beats Soitec on 11 of the 13 factors compared between the two stocks.

About Soitec

Soitec SA designs and manufactures semiconductor materials worldwide. Its products are used to manufacture chips that are used in smart phones, tablets, computers, IT servers, and data centers, as well as electronic components in cars, connected devices, and industrial and medical equipment. It provides CONNECT Radio Frequency Silicon-on-Insulator (RF-SOI) for smartphone front-end modules; CONNECT Piezoelectric-on-Insulator RF filters for smartphone; and CONNECT RF gallium nitride for 5g infrastructure base stations and smartphones, as well as CONNECT Fully Depleted Silicon-On-Insulator (FD-SOI). The company also offers Auto Power-SOI product for automotive and industrial markets; Auto Smartsic for green mobility; and AUTO POWER-allium nitride for power efficiency, as well as AUTO FD-SOI for automotive radar and processors. In addition, it provides Smart photonics-SOI products for optical networking; Smart Imager-SOI products for next generation 3D image sensing; Smart FD-SOI for ultra low power, energy efficient, and body biasing; smart partially depleted (PD) -SOI for high-performance computing markets. Soitec SA was incorporated in 1992 and is headquartered in Bernin, France.

About FormFactor

FormFactor, Inc. designs, manufactures, and sells probe cards, analytical probes, probe stations, metrology systems, thermal systems, and cryogenic systems to semiconductor companies and scientific institutions in the United States, Taiwan, South Korea, China, Europe, Japan, Malaysia, Singapore, and internationally. It operates in two segments, Probe Cards and Systems. The company offers probe cards to test various semiconductor device types, including systems on a chip products, mobile application processors, microprocessors, microcontrollers, and graphic processors, as well as radio frequency, analog, mixed signal, image sensor, electro-optical, dynamic random access memory, NAND flash memory, and NOR flash memory devices, as well as computer processor devices; and analytical probes, which are used for a range of applications, including device characterization, electrical simulation model development, failure analysis, and prototype design debugging for universities, research institutions, semiconductor integrated device manufacturers, semiconductor foundries, and fabless semiconductor companies. It also provides probe systems for semiconductor design engineers to capture and analyze accurate data; surface metrology systems for the development, production, and quality control of semiconductor products; thermal subsystems, such as thermal chucks and other test systems used in probe stations and other applications; and precision cryogenic instruments, semiconductor tests, and measurement systems. In addition, the company offers on-site probe card maintenance and service training, seminars, and telephone support services. It markets and sells its products through direct sales force, manufacturers' representatives, and distributors. The company was incorporated in 1993 and is headquartered in Livermore, California.