Tower Semiconductor (NASDAQ:TSEM) and FormFactor (NASDAQ:FORM) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.
This is a summary of current recommendations and price targets for Tower Semiconductor and FormFactor, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Tower Semiconductor presently has a consensus price target of $24.33, suggesting a potential upside of 29.85%. FormFactor has a consensus price target of $27.88, suggesting a potential downside of 0.80%. Given Tower Semiconductor’s stronger consensus rating and higher possible upside, analysts clearly believe Tower Semiconductor is more favorable than FormFactor.
Institutional & Insider Ownership
53.8% of Tower Semiconductor shares are owned by institutional investors. Comparatively, 92.5% of FormFactor shares are owned by institutional investors. 1.0% of Tower Semiconductor shares are owned by company insiders. Comparatively, 1.2% of FormFactor shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Risk and Volatility
Tower Semiconductor has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500. Comparatively, FormFactor has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500.
Earnings and Valuation
This table compares Tower Semiconductor and FormFactor’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Tower Semiconductor||$1.23 billion||1.62||$90.05 million||$0.87||21.54|
|FormFactor||$589.46 million||3.63||$39.35 million||$0.81||34.69|
Tower Semiconductor has higher revenue and earnings than FormFactor. Tower Semiconductor is trading at a lower price-to-earnings ratio than FormFactor, indicating that it is currently the more affordable of the two stocks.
This table compares Tower Semiconductor and FormFactor’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
FormFactor beats Tower Semiconductor on 8 of the 14 factors compared between the two stocks.
About Tower Semiconductor
Tower Semiconductor Ltd., an independent semiconductor foundry, manufactures and markets analog intensive mixed-signal semiconductor devices in the United States, Japan, Asia, and Europe. It provides various customizable process technologies, including SiGe, BiCMOS, mixed-signal/CMOS, RF CMOS, CMOS image sensor, integrated power management, and MEMS. The company also offers transfer optimization and development process services to integrated device manufacturers and fabless companies. It serves various markets, such as automotive, medical and dental, professional photography, industrial and machine vision, AR and 3D gesture control, security, space and scientific, projectors and display, consumer, aerospace and defense, computers and servers, as well as Internet of Things; timing controllers; digital, mixed-signal/CMOS & RFCMOS; and display driver IC. The company was founded in 1993 and is headquartered in Migdal Haemek, Israel.
FormFactor, Inc. designs, manufactures, and sells probe cards, analytical probes, probe stations, integrated measurement systems, and thermal sub-systems, as well as provides related services. It operates in two segments, Probe Cards and Systems. The company offers probe cards that are used to test various semiconductor device types, including system 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 probing systems for semiconductor design engineers to capture and analyze accurate data; integrated measurement systems that include test instrumentation, probe, cabling configurations, and software to enable fast, accurate, and on-wafer data collection for complex application and measurement needs; thermal subsystems that produce thermal chucks and other test systems used in probe stations. In addition, the company offers on-site probe card maintenance and service training, seminars, and telephone support services. FormFactor, Inc. markets and sells its products through direct sales force, manufacturers' representatives, and distributors in the United States, Taiwan, South Korea, China, Japan, Europe, the Asia-Pacific, and internationally. The company was founded in 1993 and is headquartered in Livermore, California.
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