FormFactor (NASDAQ:FORM – Get Free Report) and Canaan (NASDAQ:CAN – Get Free Report) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, earnings, risk and analyst recommendations.

Earnings & Valuation

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

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

Profitability

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

Institutional & Insider Ownership

98.8% of FormFactor shares are owned by institutional investors. Comparatively, 70.1% of Canaan shares are owned by institutional investors. 1.0% of FormFactor shares are owned by insiders. Comparatively, 0.3% of Canaan shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for FormFactor and Canaan, as reported by MarketBeat.com.

FormFactor presently has a consensus target price of $51.44, suggesting a potential upside of 0.40%. Canaan has a consensus target price of $4.25, suggesting a potential upside of 300.94%. Given Canaan’s stronger consensus rating and higher probable upside, analysts plainly believe Canaan is more favorable than FormFactor.

Volatility and Risk

FormFactor has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, Canaan has a beta of 3.09, suggesting that its share price is 209% more volatile than the S&P 500.

Summary

FormFactor beats Canaan on 11 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 Canaan

Canaan Inc. engages in the research, design, and sale of integrated circuit (IC) final mining equipment products by integrating IC products for bitcoin mining and related components in the People's Republic of China. It is also involved in the assembly and distribution of mining equipment and spare parts. The company has operations in the United States, Australia, Kazakhstan, Hong Kong, Canada, Mainland China, Thailand, Sweden, and internationally. Canaan Inc. was founded in 2013 and is based in Singapore.

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