Ultra Clean Holdings (UCTT) versus Amkor Technology (NASDAQ:AMKR) Critical Analysis
Ultra Clean Holdings (NASDAQ: UCTT) and Amkor Technology (NASDAQ:AMKR) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitabiliy, risk and institutional ownership.
Volatility & Risk
Ultra Clean Holdings has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Amkor Technology has a beta of 2.52, suggesting that its share price is 152% more volatile than the S&P 500.
Earnings & Valuation
This table compares Ultra Clean Holdings and Amkor Technology’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||1.10||$54.21 million||$0.82||26.65|
|Amkor Technology||$3.94 billion||0.62||$829.47 million||$0.65||15.69|
Amkor Technology has higher revenue and earnings than Ultra Clean Holdings. Amkor Technology 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.
Insider and Institutional Ownership
85.3% of Ultra Clean Holdings shares are held by institutional investors. Comparatively, 38.8% of Amkor Technology shares are held by institutional investors. 2.6% of Ultra Clean Holdings shares are held by insiders. Comparatively, 58.1% of Amkor Technology shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Ultra Clean Holdings and Amkor Technology’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%|
This is a breakdown of current ratings and recommmendations for Ultra Clean Holdings and Amkor Technology, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ultra Clean Holdings||0||3||2||0||2.40|
Ultra Clean Holdings currently has a consensus target price of $19.38, indicating a potential downside of 11.33%. Amkor Technology has a consensus target price of $9.10, indicating a potential downside of 10.78%. Given Amkor Technology’s higher probable upside, analysts plainly believe Amkor Technology is more favorable than Ultra Clean Holdings.
Ultra Clean Holdings beats Amkor Technology on 9 of the 14 factors compared between the two stocks.
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 Amkor Technology
Amkor Technology, Inc. is a provider of outsourced semiconductor packaging and test services. The Company’s packaging and test services are designed to meet application and chip specific requirements, including the type of interconnect technology; size, thickness and electrical, and mechanical and thermal performance. It provides packaging and test services, including semiconductor wafer bump, wafer probe, wafer backgrind, package design, packaging, system-level, and final test and drop shipment services. The Company provides its services to integrated device manufacturers (IDMs), fabless semiconductor companies and contract foundries. IDMs design, manufacture, package and test semiconductors in their own facilities. The Company offers a range of advanced and mainstream packaging and test services. The Company’s mainstream packages include leadframe packages, substrate-based wirebond packages and micro-electro-mechanical systems packages.
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