Ultra Clean (UCTT) vs. The Competition Head to Head Comparison

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

Risk & Volatility

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

Valuation & Earnings

This table compares Ultra Clean and its peers 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 peers have higher revenue and earnings than Ultra Clean. Ultra Clean 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.

Profitability

This table compares Ultra Clean and its peers’ 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%

Institutional & Insider 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 large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Ultra Clean and its peers, 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 price target of $114.00, indicating 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 analysts plainly believe Ultra Clean is more favorable than its peers.

Summary

Ultra Clean beats its peers 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.