FormFactor (NASDAQ:FORM) and Nano Labs (NASDAQ:NA) Critical Analysis

Nano Labs (NASDAQ:NA) and FormFactor (NASDAQ:FORM) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nano Labs	N/A	N/A	N/A
FormFactor	18.29%	5.38%	4.43%

Earnings & Valuation

This table compares Nano Labs and FormFactor”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nano Labs	$50.81 million	0.82	-$35.70 million	N/A	N/A
FormFactor	$742.28 million	4.46	$82.39 million	$1.74	24.58

FormFactor has higher revenue and earnings than Nano Labs.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Nano Labs and FormFactor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nano Labs	0	0	0	0	0.00
FormFactor	0	4	4	0	2.50

FormFactor has a consensus price target of $55.38, suggesting a potential upside of 29.47%. Given FormFactor’s stronger consensus rating and higher possible upside, analysts plainly believe FormFactor is more favorable than Nano Labs.

Volatility and Risk

Nano Labs has a beta of 2.7, suggesting that its share price is 170% more volatile than the S&P 500. Comparatively, FormFactor has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500.

Institutional & Insider Ownership

50.7% of Nano Labs shares are owned by institutional investors. Comparatively, 98.8% of FormFactor shares are owned by institutional investors. 1.0% of FormFactor shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

FormFactor beats Nano Labs on 11 of the 12 factors compared between the two stocks.

About Nano Labs

Nano Labs Ltd operates as a fabless integrated circuit design company and product solution provider in the People's Republic of China and internationally. It develops high throughput computing and high-performance computing chips. The company also offers distributed computing and storage solutions, smart network interface cards, and vision computing chips, as well as distributed rendering technology. In addition, it engages in the research and development of software. Its customers include enterprises and individual buyers. The company was founded in 2019 and is headquartered in Hangzhou, the People's Republic of China.

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.