SLAB vs FORM

For growth investors, Silicon Laboratories Inc.

(SLAB) is the stronger pick with 34. 3% revenue growth year-over-year, versus 2. 8% for FormFactor, Inc. (FORM). FormFactor, Inc. (FORM) offers the better valuation at 216. 1x trailing P/E (68. 5x forward), making it the more compelling value choice. Analysts rate Silicon Laboratories Inc. (SLAB) a "Buy" — based on 37 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 68. 5x.

Over the past 5 years, FormFactor, Inc.

(FORM) delivered a total return of +289. 8%, compared to +63. 0% for Silicon Laboratories Inc. (SLAB). Over 10 years, the gap is even starker: FORM returned +20. 8% versus SLAB's +369. 4%. 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), Silicon Laboratories Inc.

(SLAB) is the lower-risk stock at 1. 25β versus FormFactor, Inc. 's 2. 02β — meaning FORM is approximately 62% more volatile than SLAB relative to the S&P 500.

By revenue growth (latest reported year), Silicon Laboratories Inc.

(SLAB) is pulling ahead at 34. 3% versus 2. 8% for FormFactor, Inc. (FORM). On earnings-per-share growth, the picture is similar: Silicon Laboratories Inc. grew EPS 66. 6% 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 -8. 3% for Silicon Laboratories 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 -9. 0% for SLAB. At the gross margin level — before operating expenses — SLAB leads at 58. 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.

On forward earnings alone, FormFactor, Inc.

(FORM) trades at 68. 5x forward P/E versus 80. 0x for Silicon Laboratories Inc. — 11. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SLAB: -2. 3% to $211. 60.

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, Silicon Laboratories Inc.

(SLAB) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 25), +369. 4% 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 (SLAB: +369. 4%, FORM: +20. 8%), 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.

In terms of investment character: SLAB is a small-cap high-growth stock; FORM is a mid-cap quality compounder stock. 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.