Entegris (NASDAQ: ENTG) and Ultra Clean Holdings (NASDAQ:UCTT) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, profitability and dividends.

Earnings & Valuation

This table compares Entegris and Ultra Clean Holdings’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Entegris $1.25 billion 3.42 $298.17 million $0.84 35.89
Ultra Clean Holdings $753.55 million 1.46 $74.66 million $1.39 23.73

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

Analyst Recommendations

This is a summary of current recommendations for Entegris and Ultra Clean Holdings, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Entegris 0 3 6 1 2.80
Ultra Clean Holdings 0 2 3 1 2.83

Entegris currently has a consensus price target of $28.78, indicating a potential downside of 4.55%. Ultra Clean Holdings has a consensus price target of $30.80, indicating a potential downside of 6.61%. Given Entegris’ higher possible upside, analysts plainly believe Entegris is more favorable than Ultra Clean Holdings.

Volatility & Risk

Entegris has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500. Comparatively, Ultra Clean Holdings has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500.

Profitability

This table compares Entegris and Ultra Clean Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Entegris 9.63% 17.04% 9.28%
Ultra Clean Holdings 6.25% 24.16% 13.62%

Institutional and Insider Ownership

94.8% of Entegris shares are owned by institutional investors. Comparatively, 77.6% of Ultra Clean Holdings shares are owned by institutional investors. 1.7% of Entegris shares are owned by company insiders. Comparatively, 2.6% of Ultra Clean Holdings shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Entegris beats Ultra Clean Holdings on 9 of the 14 factors compared between the two stocks.

About Entegris

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.

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.

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