Ultratech (NASDAQ: UTEK) and Entegris (NASDAQ:ENTG) are both technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitabiliy, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for Ultratech and Entegris, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ultratech 0 3 0 0 2.00
Entegris 0 3 4 1 2.75

Ultratech currently has a consensus price target of $28.88, suggesting a potential downside of 4.47%. Entegris has a consensus price target of $27.14, suggesting a potential upside of 13.81%. Given Entegris’ stronger consensus rating and higher probable upside, analysts clearly believe Entegris is more favorable than Ultratech.

Profitability

This table compares Ultratech and Entegris’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ultratech 5.17% 3.22% 2.83%
Entegris 9.63% 17.04% 9.28%

Valuation and Earnings

This table compares Ultratech and Entegris’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Ultratech N/A N/A N/A $0.42 71.98
Entegris $1.25 billion 2.71 $298.17 million $0.84 28.39

Entegris has higher revenue and earnings than Ultratech. Entegris is trading at a lower price-to-earnings ratio than Ultratech, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Ultratech has a beta of 0.34, indicating that its share price is 66% less volatile than the S&P 500. Comparatively, Entegris has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500.

Institutional & Insider Ownership

92.7% of Ultratech shares are owned by institutional investors. Comparatively, 98.2% of Entegris shares are owned by institutional investors. 5.9% of Ultratech shares are owned by insiders. Comparatively, 1.7% of Entegris shares 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.

Summary

Entegris beats Ultratech on 11 of the 12 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.

Entegris Company Profile

Entegris, Inc. is a global developer, manufacturer and supplier of microcontamination control products, specialty chemicals and materials handling solutions for manufacturing processes in the semiconductor and other high-technology industries. The Company operates in three business segments: Specialty Chemicals and Engineered Materials (SCEM), Advanced Materials Handling (AMH) and Microcontamination Control (MC). The SCEM segment provides process chemistries, gases, materials and delivery systems to support semiconductor and other manufacturing processes. The AMH segment develops solutions to monitor, protect, transport, and deliver critical liquid chemistries and substrates for a set of applications in the semiconductor industry and other high-technology industries. AMH offers wafer solutions, chemical containers and fluidics. MC offers solutions to purify critical liquid chemistries and gases used in semiconductor manufacturing processes and other high-technology industries.

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