Analog Devices (NASDAQ:ADI) versus FormFactor (NASDAQ:FORM) Head to Head Analysis

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FormFactor	$980.10 million	7.37	$54.36 million	$2.19	42.16
Analog Devices	$11.02 billion	18.00	$2.27 billion	$8.43	48.55

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

Volatility & Risk

FormFactor has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, Analog Devices has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.

Profitability

This table compares FormFactor and Analog Devices’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FormFactor	17.72%	18.40%	15.36%
Analog Devices	29.79%	16.39%	11.49%

Analyst Ratings

This is a breakdown of recent ratings and price targets for FormFactor and Analog Devices, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FormFactor	0	4	8	1	2.77
Analog Devices	0	3	29	1	2.94

FormFactor currently has a consensus target price of $133.25, indicating a potential upside of 44.33%. Analog Devices has a consensus target price of $460.55, indicating a potential upside of 12.52%. Given FormFactor’s higher probable upside, equities analysts plainly believe FormFactor is more favorable than Analog Devices.

Insider and Institutional Ownership

98.8% of FormFactor shares are held by institutional investors. Comparatively, 86.8% of Analog Devices shares are held by institutional investors. 0.8% of FormFactor shares are held by company insiders. Comparatively, 0.4% of Analog Devices shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

About FormFactor

FormFactor, Inc. designs and manufactures testing and measurement products used in the development and production of semiconductor devices. Its offerings include probe cards, which connect test equipment to semiconductor wafers, as well as probe stations and related systems for electrical and thermal characterization. The company’s products support testing at multiple stages of semiconductor development and manufacturing, including work on advanced integrated circuits and other complex devices. FormFactor serves customers around the world, including semiconductor manufacturers and research organizations.

About Analog Devices

Analog Devices, Inc. designs and manufactures semiconductor products that help customers sense, measure, interpret and process real-world signals. Its offerings include analog and mixed-signal integrated circuits, power management products, radio-frequency technology, sensors and digital signal processing solutions. The company’s products are used in industrial automation, automotive systems, communications infrastructure, healthcare equipment, consumer devices and aerospace and defense applications.