Analyzing Xcerra (XCRA) & FormFactor (FORM)
Xcerra (NASDAQ: XCRA) and FormFactor (NASDAQ:FORM) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.
Institutional & Insider Ownership
84.3% of Xcerra shares are held by institutional investors. Comparatively, 84.6% of FormFactor shares are held by institutional investors. 2.6% of Xcerra shares are held by company insiders. Comparatively, 2.3% of FormFactor shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares Xcerra and FormFactor’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Xcerra||$390.77 million||1.41||$22.55 million||$0.74||13.55|
|FormFactor||$383.88 million||2.95||-$6.55 million||$0.26||59.62|
Xcerra has higher revenue and earnings than FormFactor. Xcerra is trading at a lower price-to-earnings ratio than FormFactor, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for Xcerra and FormFactor, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Xcerra currently has a consensus price target of $10.25, indicating a potential upside of 2.19%. FormFactor has a consensus price target of $18.73, indicating a potential upside of 20.86%. Given FormFactor’s stronger consensus rating and higher possible upside, analysts plainly believe FormFactor is more favorable than Xcerra.
Volatility & Risk
Xcerra has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500. Comparatively, FormFactor has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500.
This table compares Xcerra and FormFactor’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
FormFactor beats Xcerra on 9 of the 15 factors compared between the two stocks.
Xcerra Corporation is a provider of test and handling capital equipment, interface products, test fixtures and related services to the semiconductor and electronics manufacturing industries. The Company operates through six segments: Semiconductor Test, Semiconductor Handlers, Contactors, PCB Test, Probes/Pins and Fixtures. The Semiconductor Test segment includes operations related to the design, manufacture and sale of automated test equipment for the semiconductor industry that is used to test system-on-a-chip, digital, analog and mixed signal integrated circuits. The Semiconductor Handlers segment includes operations related to the design, manufacture and sale of test handlers used in the testing of integrated circuits. The Contactors segment includes operations related to the design, manufacture and sale of test contactors. The PCB test segment includes operations related to design, manufacture and sale of equipment used in the testing of bare and loaded printed circuit boards.
FormFactor, Inc. is a provider of test and measurement solutions. The Company’s segments include the Probe Cards segment and Systems segment. The Company designs, manufactures and sells multiple product lines, including probe cards, analytical probes, probe stations, integrated measurement systems, thermal sub-systems, reliability test systems, and related services. Its products provide electrical information from a range of semiconductor and electro-optical devices and integrated circuits (devices) from development to production. Probe Cards segment consists of probe card products and analytical probes. Systems segment consists of wafer probing, thermal and reliability products to enable precision on-wafer measurement of integrated circuits. Systems products are used in the early phases of the development and characterization of semiconductor processes.
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