FormFactor, Inc. (FORM) vs Onto Innovation Inc. (ONTO)

FormFactor, Inc. and Onto Innovation Inc. are both Semiconductor Equipment & Materials companies. Onto Innovation Inc. is the larger, with a market value of $13.9B against $10.3B — 1.4× the size. FormFactor, Inc. trades at the lower P/E: 87.8× against 107×. FormFactor, Inc. grew revenue faster over the last twelve months: 18.0% against 8.08%. FormFactor, Inc. has the higher net margin (12.8% vs 11.8%) and the higher return on invested capital (9.33% vs 5.56%). Across the 22 metrics below, FormFactor, Inc. leads on 12 and Onto Innovation Inc. on 10.

Valuation

Metric FORM ONTO Semiconductor Equipment & Materials median
P/E 87.75 106.93 54.39
P/S 11.23 12.69 6.08
P/B 9.12 7.39 4.89
Price to free cash flow 74.19 56.30 60.92
EV/EBITDA 64.77 63.89 39.95
EV/Sales 10.86 12.32 6.36
Earnings yield 1.14% 0.94% 1.14%
Free cash flow yield 1.35% 1.78% 1.28%

Profitability

Metric FORM ONTO Semiconductor Equipment & Materials median
Gross margin 43.13% 50.36% 43.95%
Operating margin 12.85% 12.02% 10.32%
Net margin 12.80% 11.84% 7.45%
Free cash flow margin 15.14% 22.54% 6.77%
Return on equity 10.99% 6.82% 4.78%
Return on assets 9.15% 4.54% 3.62%
Return on invested capital 9.33% 5.56% 6.10%

Growth

Metric FORM ONTO Semiconductor Equipment & Materials median
Revenue growth (TTM) 18.01% 8.08% 14.60%
EPS growth (last fiscal year) (22.47%) (31.53%) —
Revenue growth, 5-year CAGR 2.51% 12.55% 8.85%
Net income growth, 5-year CAGR (7.09%) 34.54% 0.00%

Health

Metric FORM ONTO Semiconductor Equipment & Materials median
Debt to equity 0.01 0.77 0.09
Current ratio 4.08 9.73 3.66
Net debt to EBITDA (2.85) (3.39) (0.49)

Dividend

Metric FORM ONTO Semiconductor Equipment & Materials median
Dividend yield — — 0.85%
Payout ratio 0.00 0.00 0.00

Size

Metric FORM ONTO Semiconductor Equipment & Materials median
Market cap 10.27b 13.94b 4.63b

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