Head-To-Head Review: FormFactor (NASDAQ:FORM) & Enphase Energy (NASDAQ:ENPH)

Enphase Energy (NASDAQ:ENPH) and FormFactor (NASDAQ:FORM) are both oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

72.1% of Enphase Energy shares are owned by institutional investors. Comparatively, 98.8% of FormFactor shares are owned by institutional investors. 3.4% of Enphase Energy shares are owned by insiders. Comparatively, 1.0% of FormFactor shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Enphase Energy	9.12%	17.30%	4.94%
FormFactor	17.20%	4.18%	3.43%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Enphase Energy and FormFactor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enphase Energy	3	10	18	0	2.48
FormFactor	0	4	4	0	2.50

Enphase Energy currently has a consensus price target of $128.89, indicating a potential upside of 12.08%. FormFactor has a consensus price target of $59.63, indicating a potential upside of 28.78%. Given FormFactor’s stronger consensus rating and higher probable upside, analysts plainly believe FormFactor is more favorable than Enphase Energy.

Risk & Volatility

Enphase Energy has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500. Comparatively, FormFactor has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.

Valuation and Earnings

This table compares Enphase Energy and FormFactor”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enphase Energy	$1.42 billion	11.02	$438.94 million	$1.92	59.90
FormFactor	$705.94 million	5.06	$82.39 million	$1.32	35.08

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

Summary

Enphase Energy beats FormFactor on 10 of the 14 factors compared between the two stocks.

About Enphase Energy

Enphase Energy, Inc., together with its subsidiaries, designs, develops, manufactures, and sells home energy solutions for the solar photovoltaic industry in the United States and internationally. The company offers semiconductor-based microinverter, which converts energy at the individual solar module level and combines with its proprietary networking and software technologies to provide energy monitoring and control. It also provides microinverter units and related accessories, an IQ gateway; IQ batteries; the cloud-based Enlighten monitoring service; storage solutions; and electric vehicle charging solutions, as well as design, proposal, permitting, and lead generation services. The company sells its solutions to solar distributors; and directly to large installers, original equipment manufacturers, strategic partners, and homeowners, as well as through its legacy product upgrade program or online store. Enphase Energy, Inc. was incorporated in 2006 and is headquartered in Fremont, California.

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.