FormFactor (NASDAQ:FORM – Get Free Report) and indie Semiconductor (NASDAQ:INDI – Get Free Report) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.
Insider & Institutional Ownership
98.8% of FormFactor shares are held by institutional investors. Comparatively, 67.7% of indie Semiconductor shares are held by institutional investors. 1.0% of FormFactor shares are held by insiders. Comparatively, 8.2% of indie Semiconductor shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and target prices for FormFactor and indie Semiconductor, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| FormFactor | 0 | 4 | 4 | 0 | 2.50 |
| indie Semiconductor | 0 | 0 | 6 | 0 | 3.00 |
Volatility & Risk
FormFactor has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, indie Semiconductor has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500.
Earnings and Valuation
This table compares FormFactor and indie Semiconductor”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| FormFactor | $742.28 million | 4.47 | $82.39 million | $1.74 | 24.64 |
| indie Semiconductor | $228.81 million | 3.62 | -$117.62 million | ($0.67) | -6.12 |
FormFactor has higher revenue and earnings than indie Semiconductor. indie Semiconductor is trading at a lower price-to-earnings ratio than FormFactor, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares FormFactor and indie Semiconductor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| FormFactor | 18.29% | 5.38% | 4.43% |
| indie Semiconductor | -49.88% | -24.04% | -14.42% |
Summary
FormFactor beats indie Semiconductor on 9 of the 14 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 indie Semiconductor
indie Semiconductor, Inc. provides automotive semiconductors and software solutions for advanced driver assistance systems, autonomous vehicle, in-cabin, connected car, and electrification applications in the United States, South America, rest of North America, Greater China, South Korea, rest of the Asia Pacific, and Europe. It offers ultrasonic sensors for parking assist and systems; radar sensors for audio assistance and reverse information; front cameras for vehicle detection, collision avoidance, and sign reading; and side/inside cameras for blind spot and lane change assist, and driver behavior monitoring. The company also provides LiDAR for distance, speed, and obstacle detection, collision avoidance, and emergency brake system; and long range RADAR for audio assistance, obstacle detection, and ACC stop and go. In addition, it designs and manufactures photonic components on various technology platforms, including fiber Bragg gratings, low-noise lasers, athermal and tunable packaging, photonic integration, and low-noise and high-speed electronics. The company was founded in 2007 and is headquartered in Aliso Viejo, California.
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