Comprehensive Stock Comparison
Compare Onto Innovation Inc. (ONTO) vs FormFactor, Inc. (FORM) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | ONTO | 21.0% revenue growth vs FORM's 15.2% |
| Value | ONTO | Lower P/E (43.4x vs 55.4x), PEG 0.34 vs 4.70 |
| Quality / Margins | ONTO | 17.5% net margin vs FORM's 6.8% |
| Stability / Safety | FORM | Beta 2.00 vs ONTO's 2.24 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | FORM | +196.9% vs ONTO's +48.2% |
| Efficiency (ROA) | ONTO | 8.0% ROA vs FORM's 4.3%, ROIC 8.6% vs 6.2% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Onto Innovation is a semiconductor equipment company that makes process control tools for defect inspection, optical metrology, and lithography systems used in chip manufacturing. It generates revenue primarily from selling these capital equipment systems — along with software licenses and spare parts — to semiconductor manufacturers and advanced packaging facilities. The company's competitive advantage lies in its integrated portfolio of inspection, metrology, and lithography technologies that help chipmakers improve yields and process control across multiple manufacturing steps.
FormFactor is a semiconductor testing equipment company that designs and manufactures probe cards and analytical systems used to test integrated circuits during development and production. It generates revenue primarily from probe cards (~70% of sales) for production testing and systems (~30%) for R&D applications—serving semiconductor manufacturers, foundries, and research institutions. The company's competitive advantage lies in its deep technical expertise in wafer-level testing and strong relationships with leading semiconductor companies that rely on its precision measurement solutions.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
ONTO leads in 3 of 6 categories (Financial Metrics, Valuation Metrics). FORM leads in 1 (Total Returns). 1 tied.
Financial Metrics (TTM)
ONTO and FORM operate at a comparable scale, with $1.0B and $785M in trailing revenue. ONTO is the more profitable business, keeping 17.5% of every revenue dollar as net income compared to FORM's 6.8%. On growth, FORM holds the edge at +13.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ONTOOnto Innovation I… | FORMFormFactor, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $1.0B | $785M |
| EBITDAEarnings before interest/tax | $215M | $85M |
| Net IncomeAfter-tax profit | $175M | $53M |
| Free Cash FlowCash after capex | $261M | $12M |
| Gross MarginGross profit ÷ Revenue | +50.7% | +39.3% |
| Operating MarginEBIT ÷ Revenue | +16.1% | +7.3% |
| Net MarginNet income ÷ Revenue | +17.5% | +6.8% |
| FCF MarginFCF ÷ Revenue | +26.1% | +1.5% |
| Rev. Growth (YoY)Latest quarter vs prior year | -13.5% | +13.6% |
| EPS Growth (YoY)Latest quarter vs prior year | -46.7% | +141.7% |
Valuation Metrics
At 53.2x trailing earnings, ONTO trades at a 52% valuation discount to FORM's 111.1x P/E. Adjusting for growth (PEG ratio), ONTO offers better value at 0.41x vs FORM's 9.43x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | ONTOOnto Innovation I… | FORMFormFactor, Inc. |
|---|---|---|
| Market CapShares × price | $10.6B | $7.6B |
| Enterprise ValueMkt cap + debt − cash | $10.4B | $7.5B |
| Trailing P/EPrice ÷ TTM EPS | 53.17x | 111.10x |
| Forward P/EPrice ÷ next-FY EPS est. | 43.45x | 55.40x |
| PEG RatioP/E ÷ EPS growth rate | 0.41x | 9.43x |
| EV / EBITDAEnterprise value multiple | 41.83x | 76.51x |
| Price / SalesMarket cap ÷ Revenue | 10.77x | 9.99x |
| Price / BookPrice ÷ Book value/share | 5.57x | 8.18x |
| Price / FCFMarket cap ÷ FCF | 49.73x | 96.40x |
Profitability & Efficiency
ONTO delivers a 8.7% return on equity — every $100 of shareholder capital generates $9 in annual profit, vs $5 for FORM. ONTO carries lower financial leverage with a 0.01x debt-to-equity ratio, signaling a more conservative balance sheet compared to FORM's 0.04x.
| Metric | ONTOOnto Innovation I… | FORMFormFactor, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +8.7% | +5.1% |
| ROA (TTM)Return on assets | +8.0% | +4.3% |
| ROICReturn on invested capital | +8.6% | +6.2% |
| ROCEReturn on capital employed | +10.1% | +6.5% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 7 |
| Debt / EquityFinancial leverage | 0.01x | 0.04x |
| Net DebtTotal debt minus cash | -$198M | -$152M |
| Cash & Equiv.Liquid assets | $213M | $191M |
| Total DebtShort + long-term debt | $15M | $39M |
| Interest CoverageEBIT ÷ Interest expense | — | 154.98x |
Total Returns (with DRIP)
A $10,000 investment in ONTO five years ago would be worth $32,666 today (with dividends reinvested), compared to $20,434 for FORM. Over the past 12 months, FORM leads with a +196.9% total return vs ONTO's +48.2%. The 3-year compound annual growth rate (CAGR) favors FORM at 48.7% vs ONTO's 37.8% — a key indicator of consistent wealth creation.
| Metric | ONTOOnto Innovation I… | FORMFormFactor, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +30.2% | +67.1% |
| 1-Year ReturnPast 12 months | +48.2% | +196.9% |
| 3-Year ReturnCumulative with dividends | +161.8% | +228.5% |
| 5-Year ReturnCumulative with dividends | +226.7% | +104.3% |
| 10-Year ReturnCumulative with dividends | +1455.4% | +1201.1% |
| CAGR (3Y)Annualised 3-year return | +37.8% | +48.7% |
Risk & Volatility
FORM is the less volatile stock with a 2.00 beta — it tends to amplify market swings less than ONTO's 2.24 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | ONTOOnto Innovation I… | FORMFormFactor, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.24x | 2.00x |
| 52-Week HighHighest price in past year | $232.49 | $107.04 |
| 52-Week LowLowest price in past year | $85.88 | $22.58 |
| % of 52W HighCurrent price vs 52-week peak | +92.9% | +92.4% |
| RSI (14)Momentum oscillator 0–100 | 55.6 | 61.6 |
| Avg Volume (50D)Average daily shares traded | 713K | 1.2M |
Analyst Outlook
Wall Street rates ONTO as "Buy" and FORM as "Buy". Consensus price targets imply 21.2% upside for ONTO (target: $262) vs -22.8% for FORM (target: $76).
| Metric | ONTOOnto Innovation I… | FORMFormFactor, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $261.67 | $76.29 |
| # AnalystsCovering analysts | 11 | 19 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +0.2% | +0.7% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Onto Innovation Inc. (ONTO) | 100 | 637.98 | +538.0% |
| FormFactor, Inc. (FORM) | 100 | 314.66 | +214.7% |
Onto Innovation Inc. (ONTO) returned +227% over 5 years vs FormFactor, Inc. (FORM)'s +104%. A $10,000 investment in ONTO 5 years ago would be worth $32,666 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Onto Innovation Inc. (ONTO) | $222M | $987M | +345.4% |
| FormFactor, Inc. (FORM) | $282M | $764M | +170.4% |
Onto Innovation Inc.'s revenue grew from $222M (2015) to $987M (2024) — a 18.1% CAGR. FormFactor, Inc.'s revenue grew from $282M (2015) to $764M (2024) — a 11.7% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Onto Innovation Inc. (ONTO) | 8.1% | 20.4% | +152.2% |
| FormFactor, Inc. (FORM) | -0.5% | 9.1% | +1790.1% |
Onto Innovation Inc.'s net margin went from 8% (2015) to 20% (2024). FormFactor, Inc.'s net margin went from -1% (2015) to 9% (2024).
Chart 4P/E Ratio History — 8 Years
| Stock | 2017 | 2024 | Change |
|---|---|---|---|
| Onto Innovation Inc. (ONTO) | 24.4 | 41.1 | +68.4% |
| FormFactor, Inc. (FORM) | 28.5 | 49.4 | +73.3% |
Onto Innovation Inc. has traded in a 15x–76x P/E range over 7 years; current trailing P/E is ~53x. FormFactor, Inc. has traded in a 10x–51x P/E range over 8 years; current trailing P/E is ~111x.
Chart 5EPS Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Onto Innovation Inc. (ONTO) | 0.56 | 4.06 | +625.0% |
| FormFactor, Inc. (FORM) | -0.03 | 0.89 | +3484.0% |
Onto Innovation Inc.'s EPS grew from $0.56 (2015) to $4.06 (2024) — a 25% CAGR. FormFactor, Inc.'s EPS grew from $-0.03 (2015) to $0.89 (2024).
Chart 6Free Cash Flow — 5 Years
Onto Innovation Inc. generated $214M FCF in 2024 (+31% vs 2021). FormFactor, Inc. generated $79M FCF in 2024 (+9% vs 2021).
ONTO vs FORM: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is ONTO or FORM a better buy right now?
Onto Innovation Inc. (ONTO) offers the better valuation at 53.2x trailing P/E (43.4x forward), making it the more compelling value choice. Analysts rate Onto Innovation Inc. (ONTO) a "Buy" — based on 11 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.
02Which has the better valuation — ONTO or FORM?
On trailing P/E, Onto Innovation Inc. (ONTO) is the cheapest at 53.2x versus FormFactor, Inc. at 111.1x. On forward P/E, Onto Innovation Inc. is actually cheaper at 43.4x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Onto Innovation Inc. wins at 0.34x versus FormFactor, Inc.'s 4.70x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — ONTO or FORM?
Over the past 5 years, Onto Innovation Inc. (ONTO) delivered a total return of +226.7%, compared to +104.3% for FormFactor, Inc. (FORM). A $10,000 investment in ONTO five years ago would be worth approximately $33K today (assuming dividends reinvested). Over 10 years, the gap is even starker: ONTO returned +1455% versus FORM's +1201%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — ONTO or FORM?
By beta (market sensitivity over 5 years), FormFactor, Inc. (FORM) is the lower-risk stock at 2.00β versus Onto Innovation Inc.'s 2.24β — meaning ONTO is approximately 12% more volatile than FORM relative to the S&P 500. On balance sheet safety, Onto Innovation Inc. (ONTO) carries a lower debt/equity ratio of 1% versus 4% for FormFactor, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — ONTO or FORM?
Onto Innovation Inc. (ONTO) is the more profitable company, earning 20.4% net margin versus 9.1% for FormFactor, Inc. — meaning it keeps 20.4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ONTO leads at 19.0% versus 8.5% for FORM. At the gross margin level — before operating expenses — ONTO leads at 52.2%, 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.
06Is ONTO or FORM more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, Onto Innovation Inc. (ONTO) is the more undervalued stock at a PEG of 0.34x versus FormFactor, Inc.'s 4.70x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Onto Innovation Inc. (ONTO) trades at 43.4x forward P/E versus 55.4x for FormFactor, Inc. — 11.9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ONTO: 21.2% to $261.67.
07Which pays a better dividend — ONTO or FORM?
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.
08Is ONTO or FORM better for a retirement portfolio?
For long-horizon retirement investors, Onto Innovation Inc. (ONTO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+1455% 10Y return). FormFactor, Inc. (FORM) carries a higher beta of 2.00 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (ONTO: +1455%, FORM: +1201%), 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.
09What are the main differences between ONTO and FORM?
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.
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