Ultra Clean (NASDAQ:UCTT – Get Free Report) and MaxLinear (NASDAQ:MXL – Get Free Report) are both mid-cap technology companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.
Profitability
This table compares Ultra Clean and MaxLinear’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ultra Clean | -1.07% | 6.99% | 2.89% |
| MaxLinear | -18.24% | 2.24% | 1.30% |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Ultra Clean and MaxLinear, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ultra Clean | 1 | 0 | 5 | 1 | 2.86 |
| MaxLinear | 1 | 3 | 5 | 0 | 2.44 |
Risk and Volatility
Ultra Clean has a beta of 1.86, suggesting that its share price is 86% more volatile than the S&P 500. Comparatively, MaxLinear has a beta of 3.93, suggesting that its share price is 293% more volatile than the S&P 500.
Insider and Institutional Ownership
96.1% of Ultra Clean shares are held by institutional investors. Comparatively, 90.8% of MaxLinear shares are held by institutional investors. 1.8% of Ultra Clean shares are held by company insiders. Comparatively, 7.7% of MaxLinear shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Ultra Clean and MaxLinear”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ultra Clean | $2.05 billion | 1.59 | -$181.20 million | ($0.52) | -139.79 |
| MaxLinear | $467.64 million | 20.54 | -$136.68 million | ($1.19) | -89.02 |
MaxLinear has lower revenue, but higher earnings than Ultra Clean. Ultra Clean is trading at a lower price-to-earnings ratio than MaxLinear, indicating that it is currently the more affordable of the two stocks.
Summary
Ultra Clean beats MaxLinear on 9 of the 14 factors compared between the two stocks.
About Ultra Clean
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.
About MaxLinear
MaxLinear, Inc. provides communications systems-on-chip solutions worldwide. Its products integrate various portions of a high-speed communication system, including radio frequency, high-performance analog, mixed-signal, digital signal processing, security engines, data compression and networking layers, and power management. The company's products are used in various electronic devices, such as radio transceivers and modems for 4G/5G base-station and backhaul infrastructure; optical transceivers targeting hyperscale data centers; Wi-Fi and wireline routers for home networking; broadband modems compliant with data over cable service interface specifications, passive optical fiber standards, and digital subscriber line, as well as power management and interface products. It serves electronics distributors, module makers, original equipment manufacturers, and original design manufacturers through a direct sales force, third-party sales representatives, and a network of distributors. The company was incorporated in 2003 and is headquartered in Carlsbad, California.
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