Amkor Technology (NASDAQ: AMKR) and FormFactor (NASDAQ:FORM) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Amkor Technology and FormFactor, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amkor Technology 0 1 0 0 2.00
FormFactor 0 1 5 0 2.83

Amkor Technology currently has a consensus price target of $10.50, suggesting a potential downside of 4.11%. FormFactor has a consensus price target of $17.67, suggesting a potential upside of 0.09%. Given FormFactor’s stronger consensus rating and higher probable upside, analysts clearly believe FormFactor is more favorable than Amkor Technology.

Earnings & Valuation

This table compares Amkor Technology and FormFactor’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Amkor Technology $4.01 billion 0.65 $866.26 million $1.11 9.86
FormFactor $519.99 million 2.46 $61.41 million ($0.11) -160.45

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

Profitability

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

Net Margins Return on Equity Return on Assets
Amkor Technology 6.63% 12.95% 4.35%
FormFactor -1.32% 15.62% 10.19%

Risk & Volatility

Amkor Technology has a beta of 2.66, suggesting that its stock price is 166% more volatile than the S&P 500. Comparatively, FormFactor has a beta of 1.63, suggesting that its stock price is 63% more volatile than the S&P 500.

Insider and Institutional Ownership

38.6% of Amkor Technology shares are owned by institutional investors. Comparatively, 86.2% of FormFactor shares are owned by institutional investors. 58.1% of Amkor Technology shares are owned by insiders. Comparatively, 2.3% of FormFactor shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

FormFactor beats Amkor Technology on 7 of the 13 factors compared between the two stocks.

About Amkor Technology

Amkor Technology, Inc. is a provider of outsourced semiconductor packaging and test services. The Company’s packaging and test services are designed to meet application and chip specific requirements, including the type of interconnect technology; size, thickness and electrical, and mechanical and thermal performance. It provides packaging and test services, including semiconductor wafer bump, wafer probe, wafer backgrind, package design, packaging, system-level, and final test and drop shipment services. The Company provides its services to integrated device manufacturers (IDMs), fabless semiconductor companies and contract foundries. IDMs design, manufacture, package and test semiconductors in their own facilities. The Company offers a range of advanced and mainstream packaging and test services. The Company’s mainstream packages include leadframe packages, substrate-based wirebond packages and micro-electro-mechanical systems packages.

About FormFactor

FormFactor, Inc. is a provider of test and measurement solutions. The Company’s segments include the Probe Cards segment and Systems segment. The Company designs, manufactures and sells multiple product lines, including probe cards, analytical probes, probe stations, integrated measurement systems, thermal sub-systems, reliability test systems, and related services. Its products provide electrical information from a range of semiconductor and electro-optical devices and integrated circuits (devices) from development to production. Probe Cards segment consists of probe card products and analytical probes. Systems segment consists of wafer probing, thermal and reliability products to enable precision on-wafer measurement of integrated circuits. Systems products are used in the early phases of the development and characterization of semiconductor processes.

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