Ultra Clean Holdings (UCTT) vs. The Competition Critical Review

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

Valuation and Earnings

This table compares Ultra Clean Holdings and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Ultra Clean Holdings $562.76 million $10.05 million 12.74
Ultra Clean Holdings Competitors $1.85 billion $249.59 million 5.34

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

Volatility & Risk

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

Insider & Institutional Ownership

75.7% 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, 14.7% of shares of all “Semiconductor Equipment & Testing” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for Ultra Clean Holdings and its peers, as provided 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 63 525 1317 23 2.67

Ultra Clean Holdings presently has a consensus target price of $31.00, indicating a potential upside of 29.38%. As a group, “Semiconductor Equipment & Testing” companies have a potential upside of 2.31%. Given Ultra Clean Holdings’ higher probable upside, research analysts plainly believe Ultra Clean Holdings is more favorable than its peers.

Profitability

This table compares Ultra Clean Holdings and its peers’ 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%

Summary

Ultra Clean Holdings peers 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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