Head-To-Head Review: Ultra Clean Holdings (UCTT) & Hanwha Q CELLS Co. (HQCL)
Ultra Clean Holdings (NASDAQ: UCTT) and Hanwha Q CELLS Co. (NASDAQ:HQCL) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitabiliy, earnings, institutional ownership, risk, analyst recommendations and valuation.
Institutional and Insider Ownership
85.3% of Ultra Clean Holdings shares are owned by institutional investors. Comparatively, 1.3% of Hanwha Q CELLS Co. shares are owned by institutional investors. 2.6% of Ultra Clean Holdings shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Ultra Clean Holdings and Hanwha Q CELLS Co.’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ultra Clean Holdings||$655.12 million||1.04||$54.21 million||$0.82||25.17|
|Hanwha Q CELLS Co.||$2.34 billion||0.22||$273.20 million||$1.32||4.78|
Hanwha Q CELLS Co. has higher revenue and earnings than Ultra Clean Holdings. Hanwha Q CELLS Co. is trading at a lower price-to-earnings ratio than Ultra Clean Holdings, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations and price targets for Ultra Clean Holdings and Hanwha Q CELLS Co., as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ultra Clean Holdings||0||2||3||0||2.60|
|Hanwha Q CELLS Co.||0||1||0||0||2.00|
Ultra Clean Holdings presently has a consensus price target of $18.88, suggesting a potential downside of 8.55%. Hanwha Q CELLS Co. has a consensus price target of $7.00, suggesting a potential upside of 10.94%. Given Hanwha Q CELLS Co.’s higher probable upside, analysts clearly believe Hanwha Q CELLS Co. is more favorable than Ultra Clean Holdings.
Volatility and Risk
Ultra Clean Holdings has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Hanwha Q CELLS Co. has a beta of 2.14, suggesting that its share price is 114% more volatile than the S&P 500.
This table compares Ultra Clean Holdings and Hanwha Q CELLS Co.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ultra Clean Holdings||4.22%||17.24%||9.71%|
|Hanwha Q CELLS Co.||4.72%||24.97%||4.58%|
About Ultra Clean Holdings
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.
About Hanwha Q CELLS Co.
Hanwha Q CELLS Co., Ltd., formerly Hanwha SolarOne Co., Ltd., is a global solar energy company engaged in the manufacturing of solar modules, and the development and management of downstream solar farms. It manufactures a range of photo voltaic (PV) cells and PV modules at its manufacturing facilities in China and Malaysia using manufacturing process technologies, including those developed at its research and development facilities in Germany. It also engages in PV downstream businesses, which include developing solar power projects and providing engineering, procurement and construction services, and operation and management services. It develops and builds solar power projects incorporating its PV modules to sells them to third-party purchasers upon completion. Its principal products include PV modules, PV cells, silicon ingots and silicon wafers. It sells a range of PV modules, ranging from 250 watts to 340 watts in power output specification.
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