Contrasting indie Semiconductor (NASDAQ:INDI) & FormFactor (NASDAQ:FORM)

FormFactor (NASDAQ:FORM) and indie Semiconductor (NASDAQ:INDI) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.

Analyst Recommendations

This is a breakdown of current ratings and target prices for FormFactor and indie Semiconductor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FormFactor	0	4	4	0	2.50
indie Semiconductor	0	0	6	0	3.00

FormFactor currently has a consensus target price of $55.38, indicating a potential upside of 29.14%. indie Semiconductor has a consensus target price of $8.92, indicating a potential upside of 117.48%. Given indie Semiconductor’s stronger consensus rating and higher possible upside, analysts clearly believe indie Semiconductor is more favorable than FormFactor.

Insider and Institutional Ownership

98.8% of FormFactor shares are owned by institutional investors. Comparatively, 67.7% of indie Semiconductor shares are owned by institutional investors. 1.0% of FormFactor shares are owned by insiders. Comparatively, 8.2% of indie Semiconductor shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

FormFactor has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, indie Semiconductor has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FormFactor	18.29%	5.38%	4.43%
indie Semiconductor	-49.88%	-24.04%	-14.42%

Earnings and Valuation

This table compares FormFactor and indie Semiconductor”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FormFactor	$742.28 million	4.47	$82.39 million	$1.74	24.64
indie Semiconductor	$228.81 million	3.62	-$117.62 million	($0.67)	-6.12

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

Summary

FormFactor beats indie Semiconductor on 9 of the 14 factors compared between the two stocks.

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.

About indie Semiconductor

indie Semiconductor, Inc. provides automotive semiconductors and software solutions for advanced driver assistance systems, autonomous vehicle, in-cabin, connected car, and electrification applications in the United States, South America, rest of North America, Greater China, South Korea, rest of the Asia Pacific, and Europe. It offers ultrasonic sensors for parking assist and systems; radar sensors for audio assistance and reverse information; front cameras for vehicle detection, collision avoidance, and sign reading; and side/inside cameras for blind spot and lane change assist, and driver behavior monitoring. The company also provides LiDAR for distance, speed, and obstacle detection, collision avoidance, and emergency brake system; and long range RADAR for audio assistance, obstacle detection, and ACC stop and go. In addition, it designs and manufactures photonic components on various technology platforms, including fiber Bragg gratings, low-noise lasers, athermal and tunable packaging, photonic integration, and low-noise and high-speed electronics. The company was founded in 2007 and is headquartered in Aliso Viejo, California.