Contrasting FormFactor (NASDAQ:FORM) and Mobix Labs (NASDAQ:MOBX)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mobix Labs	-437.57%	-866.93%	-89.44%
FormFactor	9.12%	5.93%	4.89%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mobix Labs	0	0	0	0	0.00
FormFactor	0	5	3	0	2.38

FormFactor has a consensus price target of $48.50, indicating a potential upside of 41.52%. Given FormFactor’s stronger consensus rating and higher possible upside, analysts clearly believe FormFactor is more favorable than Mobix Labs.

Valuation and Earnings

This table compares Mobix Labs and FormFactor”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mobix Labs	$9.33 million	4.40	-$20.03 million	($1.33)	-0.83
FormFactor	$763.60 million	3.48	$69.61 million	$0.89	38.51

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

Risk and Volatility

Mobix Labs has a beta of -0.33, suggesting that its share price is 133% less volatile than the S&P 500. Comparatively, FormFactor has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.

Institutional & Insider Ownership

8.6% of Mobix Labs shares are owned by institutional investors. Comparatively, 98.8% of FormFactor shares are owned by institutional investors. 25.1% of Mobix Labs shares are owned by company insiders. Comparatively, 1.0% of FormFactor shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

FormFactor beats Mobix Labs on 12 of the 14 factors compared between the two stocks.

About Mobix Labs

Mobix Labs, Inc., a fabless semiconductor company, provides wireless and connectivity solutions for next generation communication systems, including C-Band and mmWave 5G and high bandwidth cable applications. Its products include True5G chipset solutions; true xero active optical cables and related products designed to deliver fiber optic connectivity for a range of applications, including 5G infrastructure, autonomous vehicles, Pro A/V, AR/VR, remote medical systems, and others; electromagnetic interference filters deployed in aerospace, military, defense, medical, and healthcare products. The company was incorporated in 2020 and is based in Irvine, California. Mobix Labs, Inc. operates as a subsidiary of YDENS HOLDINGS, LLC.

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.