Financial Contrast: Ultra Clean Holdings (UCTT) versus Kulicke and Soffa Industries (KLIC)
Ultra Clean Holdings (NASDAQ: UCTT) and Kulicke and Soffa Industries (NASDAQ:KLIC) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitability.
Volatility and Risk
Ultra Clean Holdings has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500. Comparatively, Kulicke and Soffa Industries has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500.
This is a summary of current ratings and price targets for Ultra Clean Holdings and Kulicke and Soffa Industries, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ultra Clean Holdings||0||3||3||0||2.50|
|Kulicke and Soffa Industries||0||1||1||0||2.50|
Ultra Clean Holdings currently has a consensus price target of $28.40, suggesting a potential upside of 0.67%. Kulicke and Soffa Industries has a consensus price target of $31.00, suggesting a potential upside of 54.31%. Given Kulicke and Soffa Industries’ higher probable upside, analysts plainly believe Kulicke and Soffa Industries is more favorable than Ultra Clean Holdings.
Valuation & Earnings
This table compares Ultra Clean Holdings and Kulicke and Soffa Industries’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ultra Clean Holdings||$753.55 million||1.25||$74.66 million||$1.39||20.30|
|Kulicke and Soffa Industries||$738.99 million||1.93||$125.75 million||$1.20||16.74|
Kulicke and Soffa Industries has higher revenue, but lower earnings than Ultra Clean Holdings. Kulicke and Soffa Industries 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.
Institutional and Insider Ownership
77.6% of Ultra Clean Holdings shares are held by institutional investors. Comparatively, 84.9% of Kulicke and Soffa Industries shares are held by institutional investors. 2.6% of Ultra Clean Holdings shares are held by company insiders. Comparatively, 1.0% of Kulicke and Soffa Industries shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares Ultra Clean Holdings and Kulicke and Soffa Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ultra Clean Holdings||6.25%||24.16%||13.62%|
|Kulicke and Soffa Industries||11.61%||11.88%||9.53%|
Ultra Clean Holdings beats Kulicke and Soffa Industries on 7 of the 13 factors compared between the two stocks.
Ultra Clean Holdings 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.
Kulicke and Soffa Industries Company Profile
Kulicke and Soffa Industries, Inc. designs, manufactures and sells capital equipment and expendable tools, as well as services, maintains, repairs and upgrades equipment, all used to assemble semiconductor devices. The Company supplies a range of bonding equipment. The Company operates through two segments: Equipment and Expendable Tools. The Equipment segment manufactures and sells a line of ball bonders, wedge bonders, advanced packaging and surface mount technology solutions. The Expendable Tools segment manufactures and sells expendable tools for a range of semiconductor packaging applications. It offers capital equipment and expendable tools used to assemble semiconductor devices, including integrated circuits, high and low powered discrete devices, light-emitting diodes and power modules. Its customers primarily consist of semiconductor device manufacturers, outsourced semiconductor assembly and test providers, other electronics manufacturers and automotive electronics suppliers.
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