FormFactor (NASDAQ:FORM) versus Silvaco Group (NASDAQ:SVCO) Head-To-Head Review

FormFactor (NASDAQ:FORM) and Silvaco Group (NASDAQ:SVCO) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, profitability and dividends.

Institutional and Insider Ownership

98.8% of FormFactor shares are owned by institutional investors. 1.0% of FormFactor shares are owned by company insiders. Comparatively, 38.4% of Silvaco Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

FormFactor has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500. Comparatively, Silvaco Group has a beta of 3.13, suggesting that its stock price is 213% more volatile than the S&P 500.

Profitability

This table compares FormFactor and Silvaco Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FormFactor	5.75%	5.57%	4.63%
Silvaco Group	-56.53%	-14.47%	-9.44%

Valuation & Earnings

This table compares FormFactor and Silvaco Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FormFactor	$763.60 million	4.36	$69.61 million	$0.56	77.09
Silvaco Group	$59.68 million	3.15	-$39.40 million	($1.08)	-5.73

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

Analyst Recommendations

This is a summary of current recommendations for FormFactor and Silvaco Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FormFactor	0	7	2	0	2.22
Silvaco Group	1	0	4	0	2.60

FormFactor currently has a consensus price target of $41.00, indicating a potential downside of 5.03%. Silvaco Group has a consensus price target of $11.25, indicating a potential upside of 81.74%. Given Silvaco Group’s stronger consensus rating and higher possible upside, analysts plainly believe Silvaco Group is more favorable than FormFactor.

Summary

FormFactor beats Silvaco Group 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 Silvaco Group

Silvaco Group Inc. is a provider of TCAD, EDA software and SIP solutions which enable semiconductor design and AI through software and innovation. The company’s solutions are used for process and device development across display, power devices, automotive, memory, high performance compute, photonics, internet of things and 5G/6G mobile markets for complex SoC design. Silvaco Group Inc. is headquartered in Santa Clara, California.