Ultra Clean (NASDAQ: UCTT) and Ultratech (NASDAQ:UTEK) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, analyst recommendations and dividends.
Institutional and Insider Ownership
75.7% of Ultra Clean shares are owned by institutional investors. Comparatively, 92.7% of Ultratech shares are owned by institutional investors. 2.6% of Ultra Clean shares are owned by insiders. Comparatively, 5.9% of Ultratech shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Ultra Clean and Ultratech’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ultra Clean||$562.76 million||1.31||$10.05 million||$1.88||11.63|
Ultra Clean has higher revenue and earnings than Ultratech. Ultra Clean is trading at a lower price-to-earnings ratio than Ultratech, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for Ultra Clean and Ultratech, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ultra Clean presently has a consensus price target of $32.40, indicating a potential upside of 48.22%. Ultratech has a consensus price target of $28.88, indicating a potential downside of 4.47%. Given Ultra Clean’s stronger consensus rating and higher possible upside, research analysts clearly believe Ultra Clean is more favorable than Ultratech.
Risk and Volatility
Ultra Clean has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, Ultratech has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500.
This table compares Ultra Clean and Ultratech’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Ultra Clean beats Ultratech on 9 of the 11 factors compared between the two stocks.
Ultra Clean Company Profile
Ultra Clean Holdings, Inc. is engaged in the design, engineering and manufacture of production tools, modules and subsystems the semiconductor capital equipment industry. The Company’s products include precision robotic solutions; gas delivery systems; a range of industrial and automation production equipment products; subsystems that includes wafer cleaning sub-systems, chemical delivery modules, top-plate assemblies, frame assemblies, and process modules. The Company offers its products for the semiconductor capital equipment and equipment industry segments. It also sells to the consumer, medical, energy, industrial, flat panel and research equipment industries. The Company is focused on providing specialized engineering and manufacturing solutions for these applications. It provides its original equipment manufacturing (OEM) customers an outsourced solution for the development, design, component sourcing, prototyping, engineering, manufacturing and testing of various systems.
Ultratech Company Profile
Ultratech, Inc. (Ultratech) develops, manufactures and markets photolithography, laser thermal processing and inspection equipment. The Company operates through the manufacture and distribution of capital equipment to manufacturers of integrated circuits and nanotechnology components segment. The Company serves manufacturers of semiconductor devices, including packaging processes and various nanotechnology components such as laser diodes, high-brightness light emitting diodes (HBLEDs) and micro-electro-mechanical systems (MEMS), as well as atomic layer deposition systems (ALD) for customers located throughout the world. It has operations in North America, Europe, Singapore, Japan, Taiwan, Korea and the rest of Asia. The Company supplies step-and-repeat photolithography systems based on one-to-one (1X) imaging technology to customers located throughout North America, Europe and Asia.
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