Home Asia Pacific Head-To-Head Contrast: FormFactor (NASDAQ:FORM) and Cypress Semiconductor (CY)

Head-To-Head Contrast: FormFactor (NASDAQ:FORM) and Cypress Semiconductor (CY)

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

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

Profitability

This table compares FormFactor and Cypress Semiconductor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FormFactor 4.71% 11.42% 8.35%
Cypress Semiconductor 2.08% 21.26% 11.11%

Dividends

Cypress Semiconductor pays an annual dividend of $0.44 per share and has a dividend yield of 3.6%. FormFactor does not pay a dividend. Cypress Semiconductor pays out 73.3% of its earnings in the form of a dividend.

Insider & Institutional Ownership

95.9% of FormFactor shares are held by institutional investors. Comparatively, 83.4% of Cypress Semiconductor shares are held by institutional investors. 1.3% of FormFactor shares are held by company insiders. Comparatively, 0.4% of Cypress Semiconductor shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

FormFactor has a beta of 1.67, suggesting that its share price is 67% more volatile than the S&P 500. Comparatively, Cypress Semiconductor has a beta of 2.11, suggesting that its share price is 111% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for FormFactor and Cypress Semiconductor, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FormFactor 0 2 3 0 2.60
Cypress Semiconductor 1 2 8 0 2.64

FormFactor presently has a consensus target price of $17.38, suggesting a potential upside of 34.69%. Cypress Semiconductor has a consensus target price of $18.05, suggesting a potential upside of 48.40%. Given Cypress Semiconductor’s stronger consensus rating and higher probable upside, analysts plainly believe Cypress Semiconductor is more favorable than FormFactor.

Summary

Cypress Semiconductor beats FormFactor on 10 of the 16 factors compared between the two stocks.

FormFactor Company Profile

FormFactor, Inc. designs, manufactures, and sells probe cards, analytical probes, probe stations, integrated measurement systems, thermal sub-systems, and reliability test 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, South Korea, Taiwan, Japan, and rest of the Asia-Pacific, as well as in Europe and internationally. The company was founded in 1993 and is headquartered in Livermore, California.

Cypress Semiconductor Company Profile

Cypress Semiconductor Corporation designs, develops, manufactures, markets, and sells embedded system solutions worldwide. It operates in two segments, Microcontroller and Connectivity Division, and Memory Products Division. The Microcontroller and Connectivity Division provides microcontroller (MCU), analog, and wireless and wired connectivity solutions, including Traveo automotive MCUs; programmable system-on-chip and general-purpose MCUs; ARM Cortex-M4, -M3, and -M0+ MCUs; R4 CPUs; analog power management integrated circuits and energy harvesting solutions; CapSense capacitive-sensing controllers; TrueTouch touchscreens; Wi-Fi, Bluetooth, Bluetooth low energy, and ZigBee solutions; WICED development platform; and USB controllers comprising solutions for the USB-C and USB power delivery standards, as well as wireless Internet of things connectivity solutions. The Memory Products Division provides NOR and NAND flash memories, static random access memory (SRAM) products, HyperRAm, synchronous and asynchronous SRAMs, nvSRAMs, F-RAM ferroelectric memory devices, and other specialty memories and timing solutions. The company serves various markets, including automotive, industrial, consumer, computation, white goods, communications, handset, PC peripherals, mobile devices, networking, telecommunications, video, data communications, computation, and medical markets. Cypress Semiconductor Corporation sells its semiconductor products through distributors and manufacturing representative firms, as well as through sales force directly to original equipment manufacturers and their suppliers. The company was founded in 1982 and is headquartered in San Jose, California.

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