Mattson Technology (NASDAQ: MTSN) and FormFactor (NASDAQ:FORM) are both small-cap technology companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, dividends, institutional ownership, profitability and earnings.

Analyst Ratings

This is a breakdown of current recommendations for Mattson Technology and FormFactor, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mattson Technology 0 0 0 0 N/A
FormFactor 0 1 5 0 2.83

FormFactor has a consensus target price of $18.40, suggesting a potential upside of 10.51%. Given FormFactor’s higher possible upside, analysts clearly believe FormFactor is more favorable than Mattson Technology.

Volatility & Risk

Mattson Technology has a beta of 2.33, indicating that its share price is 133% more volatile than the S&P 500. Comparatively, FormFactor has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500.

Institutional and Insider Ownership

82.1% of FormFactor shares are owned by institutional investors. 2.3% of FormFactor shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Mattson Technology and FormFactor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mattson Technology -13.95% -18.69% -13.50%
FormFactor 3.68% 16.80% 11.20%

Valuation and Earnings

This table compares Mattson Technology and FormFactor’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Mattson Technology N/A N/A N/A $0.13 27.69
FormFactor $383.88 million 3.17 -$6.55 million $0.26 64.04

Mattson Technology has higher revenue, but lower earnings than FormFactor. Mattson Technology 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 Mattson Technology on 9 of the 10 factors compared between the two stocks.

Mattson Technology Company Profile

Mattson Technology, Inc. is a United States-based company, which provides a global semiconductor wafer processing equipment. The Company is engaged in designing, manufacturing, marketing and supporting semiconductor wafer processing equipment, which uses in the fabrication of integrated circuits. It operates in four product sectors: dry strip, etch, conventional rapid thermal processing and millisecond anneal. It is a supplier of dry strip and rapid thermal processing (RTP) equipment for processing to semiconductor manufactures across the world for the fabrication of various devices. It offers its technology to provide capital equipment that deliver processing capability for integrated circuit fabrication to its customers. Its product support offerings include product specific upgrade kits, labor and parts, labor bank program and process engineering services. Its designing and manufacturing centers are located in the United States, Canada and Germany.

FormFactor Company Profile

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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