Ultratech (NASDAQ: UTEK) and Qorvo (NASDAQ:QRVO) are both technology companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, valuation, dividends, institutional ownership and earnings.

Risk and Volatility

Ultratech has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500. Comparatively, Qorvo has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.

Institutional and Insider Ownership

92.7% of Ultratech shares are held by institutional investors. Comparatively, 94.3% of Qorvo shares are held by institutional investors. 5.9% of Ultratech shares are held by company insiders. Comparatively, 0.9% of Qorvo shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Ultratech and Qorvo’s 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
Qorvo $2.97 billion 3.10 $789.88 million ($0.34) -212.82

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Ultratech and Qorvo, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ultratech 0 3 0 0 2.00
Qorvo 1 12 11 0 2.42

Ultratech currently has a consensus target price of $28.88, indicating a potential downside of 4.47%. Qorvo has a consensus target price of $73.95, indicating a potential upside of 2.19%. Given Qorvo’s stronger consensus rating and higher possible upside, analysts clearly believe Qorvo is more favorable than Ultratech.

Profitability

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

Net Margins Return on Equity Return on Assets
Ultratech 5.17% 3.22% 2.83%
Qorvo -1.40% 10.10% 7.54%

Summary

Qorvo beats Ultratech on 8 of the 11 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.

Qorvo Company Profile

Qorvo, Inc. is a provider of technologies and radio frequency (RF) solutions for mobile, infrastructure and defense and aerospace applications. The Company designs, develops, manufactures and markets its products to the United States and international original equipment manufacturers (OEMs) and original design manufacturers (ODMs). Its segments include Mobile Products (MP) and Infrastructure and Defense Products (IDP). The MP segment is a supplier of radio frequency (RF) solutions that perform various functions in the cellular radio front end section of smartphones and other cellular devices. The IDP segment is a supplier of RF solutions that support various global applications, including ubiquitous high-speed network connectivity to the cloud, data center communications, Internet connectivity throughout the home and workplace, and upgraded military capabilities across the globe. It operates design, sales and manufacturing facilities located throughout Asia, Europe and North America.

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