COHU vs FORM

For growth investors, Cohu, Inc.

(COHU) is the stronger pick with 12. 7% revenue growth year-over-year, versus 2. 8% for FormFactor, Inc. (FORM). FormFactor, Inc. (FORM) offers the better valuation at 210. 1x trailing P/E (66. 6x forward), making it the more compelling value choice. Analysts rate Cohu, Inc. (COHU) a "Buy" — based on 14 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On forward P/E, FormFactor, Inc.

is actually cheaper at 66. 6x.

Over the past 5 years, FormFactor, Inc.

(FORM) delivered a total return of +284. 6%, compared to +29. 2% for Cohu, Inc. (COHU). Over 10 years, the gap is even starker: FORM returned +20. 2% versus COHU's +339. 2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), FormFactor, Inc.

(FORM) is the lower-risk stock at 2. 02β versus Cohu, Inc. 's 2. 13β — meaning COHU is approximately 5% more volatile than FORM relative to the S&P 500. On balance sheet safety, FormFactor, Inc. (FORM) carries a lower debt/equity ratio of 4% versus 46% for Cohu, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Cohu, Inc.

(COHU) is pulling ahead at 12. 7% versus 2. 8% for FormFactor, Inc. (FORM). On earnings-per-share growth, the picture is similar: Cohu, Inc. grew EPS -6. 7% year-over-year, compared to -22. 5% for FormFactor, Inc.. Over a 3-year CAGR, FORM leads at 1. 6% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

FormFactor, Inc.

(FORM) is the more profitable company, earning 6. 9% net margin versus -16. 4% for Cohu, Inc. — meaning it keeps 6. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: FORM leads at 8. 2% versus -13. 3% for COHU. At the gross margin level — before operating expenses — FORM leads at 39. 1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, FormFactor, Inc.

(FORM) trades at 66. 6x forward P/E versus 91. 0x for Cohu, Inc. — 24. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for COHU: 2. 7% to $49. 75.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, Cohu, Inc.

(COHU) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+339. 2% 10Y return). FormFactor, Inc. (FORM) carries a higher beta of 2. 02 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (COHU: +339. 2%, FORM: +20. 2%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.