With FORM Up 11% in a Week, Is It Time to Compare It Against AMAT?
Applied Materials (AMAT) offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs FormFactor (FORM), suggesting you may be better off investing in AMAT
- AMAT’s quarterly revenue growth was 6.8%, vs. FORM’s 1.6%.
- In addition, its Last 3-Year Average revenue growth came in at 4.2%, ahead of FORM’s 0.0%.
- AMAT leads on profitability over both periods – LTM margin of 29.7% and 3-year average of 29.3%.
FORM designs and sells probe cards, analytical probes, and metrology systems for testing semiconductor devices across global markets including the US, Asia, and Europe. AMAT provides manufacturing equipment, services, and software for semiconductor chip fabrication and display technologies, including LCDs, OLEDs, and other devices used in TVs, monitors, and electronics.
Valuation & Performance Overview
| FORM | AMAT | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 50.9 | 18.5 | AMAT |
| Revenue Growth | |||
| Last Quarter | 1.6% | 6.8% | AMAT |
| Last 12 Months | 15.3% | 6.0% | FORM |
| Last 3 Year Average | -0.0% | 4.2% | AMAT |
| Operating Margins | |||
| Last 12 Months | 6.1% | 29.7% | AMAT |
| Last 3 Year Average | 3.5% | 29.3% | AMAT |
| Momentum | |||
| Last 3 Year Return | -12.6% | 76.9% | AMAT |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: FORM Revenue Comparison | AMAT Revenue Comparison
See more margin details: FORM Operating Income Comparison | AMAT Operating Income Comparison
But do these numbers tell the full story? Read Buy or Sell AMAT Stock to see if Applied Materials’s edge holds up under the hood or if FormFactor still has cards to play (see Buy or Sell FORM Stock).
That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| FORM Return | 66% | 6% | -51% | 88% | 5% | -32% | 10% | ||
| AMAT Return | 43% | 84% | -38% | 68% | 1% | 16% | 219% | <=== | |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 10% | 98% | ||
| Monthly Win Rates [3] | |||||||||
| FORM Win Rate | 50% | 58% | 25% | 67% | 50% | 29% | 46% | ||
| AMAT Win Rate | 58% | 67% | 33% | 75% | 50% | 57% | 57% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 57% | 62% | <=== | |
| Max Drawdowns [4] | |||||||||
| FORM Max Drawdown | -36% | -23% | -60% | -1% | -10% | -47% | -30% | ||
| AMAT Max Drawdown | -38% | 0% | -52% | -1% | -8% | -22% | -20% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year till date (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read AMAT Dip Buyer Analyses and FORM Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.