Ultratech (NASDAQ: UTEK) and Ultra Clean (NASDAQ:UCTT) are both small-cap technology companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, valuation, dividends, institutional ownership and earnings.

Profitability

This table compares Ultratech and Ultra Clean’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ultratech 5.17% 3.22% 2.83%
Ultra Clean 7.55% 28.77% 16.02%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Ultratech and Ultra Clean, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ultratech 0 3 0 0 2.00
Ultra Clean 0 0 5 0 3.00

Ultratech currently has a consensus target price of $28.88, indicating a potential downside of 4.47%. Ultra Clean has a consensus target price of $32.40, indicating a potential upside of 55.02%. Given Ultra Clean’s stronger consensus rating and higher possible upside, analysts clearly believe Ultra Clean is more favorable than Ultratech.

Institutional and Insider Ownership

92.7% of Ultratech shares are held by institutional investors. Comparatively, 75.7% of Ultra Clean shares are held by institutional investors. 5.9% of Ultratech shares are held by company insiders. Comparatively, 2.6% of Ultra Clean shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Ultratech and Ultra Clean’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ultratech N/A N/A N/A $0.57 53.04
Ultra Clean $562.76 million 1.25 $10.05 million $1.88 11.12

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.

Risk and Volatility

Ultratech has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, Ultra Clean has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.

Summary

Ultra Clean beats Ultratech on 9 of the 11 factors compared between the two stocks.

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.

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.

Receive News & Ratings for Ultratech Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ultratech Inc. and related companies with MarketBeat.com's FREE daily email newsletter.