Reviewing FormFactor (NASDAQ:FORM) and Beam Global (NASDAQ:BEEM)

FormFactor (NASDAQ:FORM) and Beam Global (NASDAQ:BEEM) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for FormFactor and Beam Global, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FormFactor	0	5	3	0	2.38
Beam Global	0	1	3	0	2.75

FormFactor currently has a consensus target price of $48.50, suggesting a potential upside of 78.70%. Beam Global has a consensus target price of $9.00, suggesting a potential upside of 473.25%. Given Beam Global’s stronger consensus rating and higher possible upside, analysts plainly believe Beam Global is more favorable than FormFactor.

Insider and Institutional Ownership

98.8% of FormFactor shares are held by institutional investors. Comparatively, 26.6% of Beam Global shares are held by institutional investors. 1.0% of FormFactor shares are held by company insiders. Comparatively, 3.0% of Beam Global shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

FormFactor has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Beam Global has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FormFactor	9.12%	5.93%	4.89%
Beam Global	-19.26%	-19.09%	-12.16%

Earnings & Valuation

This table compares FormFactor and Beam Global”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FormFactor	$763.60 million	2.76	$69.61 million	$0.89	30.49
Beam Global	$60.88 million	0.38	-$16.06 million	($0.77)	-2.04

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

Summary

FormFactor beats Beam Global on 9 of the 13 factors compared between the two stocks.

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.

About Beam Global

Beam Global, a clean-technology innovation company, engages in the design, development, engineering, manufacture, and sale of renewably energized infrastructure products and battery solutions. Its product portfolio includes EV ARC (electric vehicle autonomous renewable charger), an infrastructure product that uses integrated solar power and battery storage to provide a mounting asset and a source of power for factory installed electric vehicle charging stations; Solar Tree DCFC, an off-grid, renewably energized, and single-column mounted smart generation and energy storage system to provide a 150kW DC fast charge to one or more electric vehicles, such as electric buses, heavy-duty vehicles, agricultural equipment, public transportation, and electric vehicles used in the construction industry; and EV ARC DCFC, a DC fast charging system for charging EVs. The company is also involved in the development of EV-Standard, a lamp standard, EV charging, and emergency power product that uses an existing streetlamp's foundation and a combination of solar, wind, grid connection, and onboard energy storage to provide curbside charging; and UAV ARC, an off-grid and renewably energized product and network used to charge aerial drone (UAV) fleets. It offers its solutions for electric vehicle (EV) charging infrastructure, energy storage, energy security, disaster preparedness, street lighting, telecommunications, energy infrastructure, and outdoor media and branding industries. The company was formerly known as Envision Solar International, Inc. and changed its name to Beam Global in September 2020. Beam Global was incorporated in 2006 and is headquartered in San Diego, California.