Nlight (NASDAQ:LASR) and FormFactor (NASDAQ:FORM) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.
Risk and Volatility
Nlight has a beta of 2.02, indicating that its stock price is 102% more volatile than the S&P 500. Comparatively, FormFactor has a beta of 1.74, indicating that its stock price is 74% more volatile than the S&P 500.
This is a breakdown of recent ratings for Nlight and FormFactor, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Nlight presently has a consensus target price of $26.29, indicating a potential upside of 60.38%. FormFactor has a consensus target price of $18.17, indicating a potential upside of 17.28%. Given Nlight’s higher possible upside, research analysts clearly believe Nlight is more favorable than FormFactor.
Earnings and Valuation
This table compares Nlight and FormFactor’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Nlight||$191.36 million||3.17||$13.94 million||$0.32||51.22|
|FormFactor||$529.67 million||2.18||$104.04 million||$0.77||20.12|
FormFactor has higher revenue and earnings than Nlight. FormFactor is trading at a lower price-to-earnings ratio than Nlight, indicating that it is currently the more affordable of the two stocks.
This table compares Nlight and FormFactor’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
78.3% of Nlight shares are owned by institutional investors. Comparatively, 93.3% of FormFactor shares are owned by institutional investors. 5.8% of Nlight shares are owned by insiders. Comparatively, 1.9% of FormFactor shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
FormFactor beats Nlight on 8 of the 14 factors compared between the two stocks.
nLIGHT, Inc. designs, develops, and manufactures semiconductor and fiber lasers used in the industrial, microfabrication, and aerospace and defense markets. The company also produces optical fiber products. It markets and sells its products to original equipment manufacturer primarily through direct sales force in the United States, China, South Korea, Germany, and Finland, as well as through various independent sales representatives and distributors in Asia and Europe. The company was formerly known as nLight Photonics Corporation and changed its name to nLIGHT, Inc. in January 2016. nLIGHT, Inc. was founded in 2000 and is headquartered in Vancouver, Washington.
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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