Mattson Technology (NASDAQ:MTSN) versus FormFactor (FORM) Critical Comparison

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

Analyst Recommendations

This is a summary of current recommendations and price targets for FormFactor and Mattson Technology, as provided by MarketBeat.com.

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

FormFactor presently has a consensus target price of $18.40, suggesting a potential upside of 17.95%. Given FormFactor’s higher possible upside, analysts clearly believe FormFactor is more favorable than Mattson Technology.

Volatility & Risk

FormFactor has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500. Comparatively, Mattson Technology has a beta of 2.33, suggesting that its stock price is 133% more volatile than the S&P 500.

Profitability

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

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

Earnings & Valuation

This table compares FormFactor and Mattson Technology’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FormFactor $383.88 million 2.97 -$6.55 million $0.26 60.00
Mattson Technology N/A N/A N/A $0.13 27.69

Mattson Technology has lower revenue, but higher 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.

Insider and Institutional Ownership

84.4% of FormFactor shares are held by institutional investors. 2.3% of FormFactor shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

FormFactor beats Mattson Technology on 9 of the 10 factors compared between the two stocks.

About FormFactor

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.

About Mattson Technology

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.

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