Analyzing Ultra Clean Holdings (UCTT) and Its Rivals

Ultra Clean Holdings (NASDAQ: UCTT) is one of 21 public companies in the “Semiconductor Equipment & Testing” industry, but how does it compare to its rivals? We will compare Ultra Clean Holdings to related companies based on the strength of its institutional ownership, earnings, valuation, analyst recommendations, profitability, dividends and risk.

Profitability

This table compares Ultra Clean Holdings and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ultra Clean Holdings 7.55% 28.77% 16.02%
Ultra Clean Holdings Competitors 7.67% 13.09% 7.72%

Analyst Ratings

This is a summary of current ratings and recommmendations for Ultra Clean Holdings and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ultra Clean Holdings 0 2 4 0 2.67
Ultra Clean Holdings Competitors 61 520 1306 23 2.68

Ultra Clean Holdings currently has a consensus price target of $31.00, suggesting a potential upside of 32.03%. As a group, “Semiconductor Equipment & Testing” companies have a potential upside of 2.92%. Given Ultra Clean Holdings’ higher possible upside, research analysts plainly believe Ultra Clean Holdings is more favorable than its rivals.

Volatility & Risk

Ultra Clean Holdings has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, Ultra Clean Holdings’ rivals have a beta of 1.25, meaning that their average stock price is 25% more volatile than the S&P 500.

Earnings and Valuation

This table compares Ultra Clean Holdings and its rivals revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Ultra Clean Holdings $562.76 million $10.05 million 12.49
Ultra Clean Holdings Competitors $1.85 billion $242.64 million 4.53

Ultra Clean Holdings’ rivals have higher revenue and earnings than Ultra Clean Holdings. Ultra Clean Holdings is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Insider & Institutional Ownership

76.3% of Ultra Clean Holdings shares are held by institutional investors. Comparatively, 79.6% of shares of all “Semiconductor Equipment & Testing” companies are held by institutional investors. 2.6% of Ultra Clean Holdings shares are held by insiders. Comparatively, 13.9% of shares of all “Semiconductor Equipment & Testing” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Ultra Clean Holdings rivals beat Ultra Clean Holdings on 9 of the 13 factors compared.

About Ultra Clean Holdings

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.

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