Contrasting FormFactor (NASDAQ:FORM) and GLOBALFOUNDRIES (NASDAQ:GFS)

GLOBALFOUNDRIES (NASDAQ:GFSGet Free Report) and FormFactor (NASDAQ:FORMGet Free Report) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, earnings, institutional ownership, dividends, valuation, analyst recommendations and risk.

Insider and Institutional Ownership

14.8% of GLOBALFOUNDRIES shares are held by institutional investors. Comparatively, 93.6% 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 large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for GLOBALFOUNDRIES and FormFactor, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GLOBALFOUNDRIES 0 3 14 0 2.82
FormFactor 0 4 3 0 2.43

GLOBALFOUNDRIES presently has a consensus target price of $73.41, indicating a potential upside of 31.52%. FormFactor has a consensus target price of $40.67, indicating a potential downside of 3.88%. Given GLOBALFOUNDRIES’s stronger consensus rating and higher probable upside, analysts plainly believe GLOBALFOUNDRIES is more favorable than FormFactor.

Profitability

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

Net Margins Return on Equity Return on Assets
GLOBALFOUNDRIES 18.47% 14.78% 8.64%
FormFactor 12.42% 2.43% 1.98%

Earnings & Valuation

This table compares GLOBALFOUNDRIES and FormFactor’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GLOBALFOUNDRIES $8.11 billion 3.77 $1.45 billion $2.55 21.89
FormFactor $663.10 million 4.96 $82.39 million $1.06 39.92

GLOBALFOUNDRIES has higher revenue and earnings than FormFactor. GLOBALFOUNDRIES is trading at a lower price-to-earnings ratio than FormFactor, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

GLOBALFOUNDRIES has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500. Comparatively, FormFactor has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500.

Summary

GLOBALFOUNDRIES beats FormFactor on 10 of the 14 factors compared between the two stocks.

About GLOBALFOUNDRIES

(Get Free Report)

GLOBALFOUNDRIES Inc. operates as a semiconductor foundry worldwide. The company manufactures a range of semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units; and offers mainstream wafer fabrication services and technologies. The company was founded in 2009 and is based in Malta, New York.

About FormFactor

(Get Free Report)

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. 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; 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. The company markets and sells its products through direct sales force, manufacturers' representatives, and distributors in the United States, China, France, Germany, Italy, the United Kingdom, Japan, Singapore, South Korea, Taiwan, and internationally. FormFactor, Inc. was incorporated in 1993 and is headquartered in Livermore, California.

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