Contrasting Ultra Clean (UCTT) and Its Competitors

Ultra Clean (NASDAQ:UCTT) is one of 221 publicly-traded companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it contrast to its rivals? We will compare Ultra Clean to related businesses based on the strength of its analyst recommendations, dividends, institutional ownership, earnings, profitability, valuation and risk.

Valuation & Earnings

This table compares Ultra Clean and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Ultra Clean	$2.05 billion	-$181.20 million	72.16
Ultra Clean Competitors	$39.42 billion	$2.48 billion	8.71

Ultra Clean’s rivals have higher revenue and earnings than Ultra Clean. Ultra Clean 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.

Volatility & Risk

Ultra Clean has a beta of 1.9, indicating that its share price is 90% more volatile than the S&P 500. Comparatively, Ultra Clean’s rivals have a beta of 2.80, indicating that their average share price is 180% more volatile than the S&P 500.

Insider & Institutional Ownership

96.1% of Ultra Clean shares are owned by institutional investors. Comparatively, 54.6% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by institutional investors. 1.8% of Ultra Clean shares are owned by insiders. Comparatively, 11.9% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ultra Clean	1.09%	12.00%	4.76%
Ultra Clean Competitors	-1,278.97%	-126.37%	-3.98%

Analyst Recommendations

This is a summary of recent ratings and price targets for Ultra Clean and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ultra Clean	1	1	6	0	2.62
Ultra Clean Competitors	3505	12358	25781	999	2.57

Ultra Clean currently has a consensus target price of $114.00, suggesting a potential upside of 177.17%. As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 53.94%. Given Ultra Clean’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Ultra Clean is more favorable than its rivals.

Summary

Ultra Clean beats its rivals on 8 of the 13 factors compared.

Ultra Clean Company Profile

Ultra Clean Holdings, Inc. develops and supplies critical subsystems, components and parts, and ultra-high purity cleaning and analytical services for the semiconductor industry in the United States and internationally. The company provides ultra-clean valves, high purity connectors, industrial process connectors and valves, pneumatic actuators, manifolds and safety solutions, hoses, pressure gauges, and gas line and component heaters; chemical delivery modules that deliver gases and reactive chemicals in a liquid or gaseous form from a centralized subsystem to the reaction chamber; and gas delivery systems, such as weldments, filters, mass flow controllers, regulators, pressure transducers and valves, component heaters, and an integrated electronic and/or pneumatic control system. It also offers various industrial and automation production equipment; fluid delivery systems consist of one or more chemical delivery units, including PFA tubing, filters, flow controllers, regulators, component heaters, and an integrated electronic and/or pneumatic control system; precision robotic systems; top-plate assemblies; frame assemblies; process modules, a subsystem of semiconductor manufacturing tools that process integrated circuits onto wafers; and other high-level assemblies. In addition, the company provides tool chamber parts cleaning and coating services; micro-contamination analysis services for tool parts, wafers and depositions, chemicals, cleanroom materials, deionized water, and airborne molecular contamination; and analytical verification services for process tool chamber part cleaning. It primarily serves original equipment manufacturing customers in the semiconductor capital equipment and semiconductor integrated device manufacturing industries, as well as display, consumer, medical, energy, industrial, and research equipment industries. The company was founded in 1991 and is headquartered in Hayward, California.