Ultra Clean (NASDAQ:UCTT – Get Free Report) and EMCORE (NASDAQ:EMKR – Get Free Report) 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 profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.
Valuation & Earnings
This table compares Ultra Clean and EMCORE”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ultra Clean | $2.14 billion | 0.45 | -$31.10 million | $0.62 | 34.42 |
| EMCORE | $81.08 million | 0.35 | -$31.24 million | ($2.92) | -1.06 |
Profitability
This table compares Ultra Clean and EMCORE’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ultra Clean | 0.18% | 4.08% | 1.94% |
| EMCORE | -42.00% | -24.27% | -12.59% |
Analyst Recommendations
This is a breakdown of recent recommendations for Ultra Clean and EMCORE, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ultra Clean | 0 | 0 | 4 | 0 | 3.00 |
| EMCORE | 0 | 1 | 0 | 0 | 2.00 |
Ultra Clean currently has a consensus target price of $37.00, indicating a potential upside of 73.38%. EMCORE has a consensus target price of $3.00, indicating a potential downside of 3.23%. Given Ultra Clean’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Ultra Clean is more favorable than EMCORE.
Insider & Institutional Ownership
96.1% of Ultra Clean shares are owned by institutional investors. Comparatively, 65.7% of EMCORE shares are owned by institutional investors. 1.9% of Ultra Clean shares are owned by insiders. Comparatively, 0.9% of EMCORE shares are owned 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.
Volatility & Risk
Ultra Clean has a beta of 2.05, indicating that its stock price is 105% more volatile than the S&P 500. Comparatively, EMCORE has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500.
Summary
Ultra Clean beats EMCORE on 14 of the 14 factors compared between the two stocks.
About Ultra Clean
Ultra Clean Holdings, Inc. develops and supplies critical subsystems, components and parts, and ultra-high purity cleaning and analytical services for the semiconductor industry in the United States and internationally. The company provides ultra-clean valves, high purity connectors, industrial process connectors and valves, pneumatic actuators, manifolds and safety solutions, hoses, pressure gauges, and gas line and component heaters; chemical delivery modules that deliver gases and reactive chemicals in a liquid or gaseous form from a centralized subsystem to the reaction chamber; and gas delivery systems, such as weldments, filters, mass flow controllers, regulators, pressure transducers and valves, component heaters, and an integrated electronic and/or pneumatic control system. It also offers various industrial and automation production equipment; fluid delivery systems consist of one or more chemical delivery units, including PFA tubing, filters, flow controllers, regulators, component heaters, and an integrated electronic and/or pneumatic control system; precision robotic systems; top-plate assemblies; frame assemblies; process modules, a subsystem of semiconductor manufacturing tools that process integrated circuits onto wafers; and other high-level assemblies. In addition, the company provides tool chamber parts cleaning and coating services; micro-contamination analysis services for tool parts, wafers and depositions, chemicals, cleanroom materials, deionized water, and airborne molecular contamination; and analytical verification services for process tool chamber part cleaning. It primarily serves original equipment manufacturing customers in the semiconductor capital equipment and semiconductor integrated device manufacturing industries, as well as display, consumer, medical, energy, industrial, and research equipment industries. The company was founded in 1991 and is headquartered in Hayward, California.
About EMCORE
EMCORE Corporation, together with its subsidiaries, designs and manufactures fiber optic gyro, ring laser gyro, and micro electromechanical system-based inertial sensors and systems in the United States and internationally. It offers navigation system and inertial sensing products, such as gyroscopes and multi-axis sensors, inertial measurement units, fiber optic gyroscopes, quartz micro electromechanical systems, inertial navigation systems, tactical navigation, and naval and amphibious navigation, as well as radar positioning and pointing systems, and battlefield/artillery survey systems. The company sells its products through direct sales force, application engineers, third-party sales representatives, and distributors. EMCORE Corporation was founded in 1984 and is headquartered in Alhambra, California.
Receive News & Ratings for Ultra Clean Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ultra Clean and related companies with MarketBeat.com's FREE daily email newsletter.
