Contrasting FormFactor (NASDAQ:FORM) and Micron Technology (NASDAQ:MU)

Micron Technology (NASDAQ:MU) and FormFactor (NASDAQ:FORM) are both large-cap technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.

Earnings & Valuation

This table compares Micron Technology and FormFactor”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Micron Technology	$133.19 billion	8.73	$84.97 billion	$74.21	13.87
FormFactor	$784.99 million	13.87	$54.36 million	$1.46	95.66

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

Institutional and Insider Ownership

80.8% of Micron Technology shares are held by institutional investors. Comparatively, 98.8% of FormFactor shares are held by institutional investors. 0.2% of Micron Technology shares are held by insiders. Comparatively, 0.8% of FormFactor shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Micron Technology	63.80%	92.62%	66.29%
FormFactor	12.80%	13.44%	11.27%

Risk & Volatility

Micron Technology has a beta of 2.22, suggesting that its share price is 122% more volatile than the S&P 500. Comparatively, FormFactor has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Micron Technology and FormFactor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Micron Technology	0	4	41	1	2.93
FormFactor	0	4	7	1	2.75

Micron Technology presently has a consensus price target of $1,407.88, suggesting a potential upside of 36.82%. FormFactor has a consensus price target of $133.50, suggesting a potential downside of 4.42%. Given Micron Technology’s stronger consensus rating and higher probable upside, equities analysts clearly believe Micron Technology is more favorable than FormFactor.

Summary

Micron Technology beats FormFactor on 10 of the 14 factors compared between the two stocks.

About Micron Technology

Micron Technology, Inc. designs, develops, manufactures, and sells memory and storage products worldwide. The company operates through four segments: Compute and Networking Business Unit, Mobile Business Unit, Embedded Business Unit, and Storage Business Unit. It provides memory and storage technologies comprising dynamic random access memory semiconductor devices with low latency that provide high-speed data retrieval; non-volatile and re-writeable semiconductor storage devices; and non-volatile re-writable semiconductor memory devices that provide fast read speeds under the Micron and Crucial brands, as well as through private labels. The company offers memory products for the cloud server, enterprise, client, graphics, networking, industrial, and automotive markets, as well as for smartphone and other mobile-device markets; SSDs and component-level solutions for the enterprise and cloud, client, and consumer storage markets; discrete storage products in component and wafers; and memory and storage products for the automotive, industrial, and consumer markets. It markets its products through its direct sales force, independent sales representatives, distributors, and retailers; and web-based customer direct sales channel, as well as through channel and distribution partners. Micron Technology, Inc. was founded in 1978 and is headquartered in Boise, Idaho.

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.