Brooks Automation (NASDAQ:BRKS) and FormFactor (NASDAQ:FORM) are both mid-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their risk, institutional ownership, earnings, profitability, dividends, valuation and analyst recommendations.
Analyst Ratings
This is a summary of current recommendations and price targets for Brooks Automation and FormFactor, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Brooks Automation | 0 | 2 | 5 | 0 | 2.71 |
FormFactor | 0 | 2 | 6 | 0 | 2.75 |
Brooks Automation presently has a consensus target price of $81.8750, suggesting a potential downside of 14.45%. FormFactor has a consensus target price of $48.25, suggesting a potential downside of 5.11%. Given FormFactor's stronger consensus rating and higher probable upside, analysts clearly believe FormFactor is more favorable than Brooks Automation.
Earnings and Valuation
This table compares Brooks Automation and FormFactor's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Brooks Automation | $897.27 million | 7.92 | $64.85 million | $1.26 | 75.95 |
FormFactor | $589.46 million | 6.71 | $39.35 million | $0.81 | 62.78 |
Brooks Automation has higher revenue and earnings than FormFactor. FormFactor is trading at a lower price-to-earnings ratio than Brooks Automation, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
95.3% of Brooks Automation shares are held by institutional investors. Comparatively, 88.9% of FormFactor shares are held by institutional investors. 1.6% of Brooks Automation shares are held by company insiders. Comparatively, 1.2% of FormFactor shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
Brooks Automation has a beta of 1.97, meaning that its stock price is 97% more volatile than the S&P 500. Comparatively, FormFactor has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500.
Profitability
This table compares Brooks Automation and FormFactor's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Brooks Automation | 7.23% | 7.95% | 6.13% |
FormFactor | 11.53% | 14.52% | 11.29% |
Summary
Brooks Automation beats FormFactor on 8 of the 14 factors compared between the two stocks.