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

Institutional & Insider Ownership

77.7% of Ultra Clean Holdings shares are held by institutional investors. Comparatively, 94.4% of Qorvo shares are held by institutional investors. 2.6% of Ultra Clean Holdings shares are held by insiders. Comparatively, 0.9% of Qorvo shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for Ultra Clean Holdings and Qorvo, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ultra Clean Holdings 0 3 3 0 2.50
Qorvo 1 12 12 0 2.44

Ultra Clean Holdings currently has a consensus target price of $28.40, suggesting a potential upside of 5.34%. Qorvo has a consensus target price of $73.95, suggesting a potential downside of 2.04%. Given Ultra Clean Holdings’ stronger consensus rating and higher possible upside, equities analysts clearly believe Ultra Clean Holdings is more favorable than Qorvo.

Valuation and Earnings

This table compares Ultra Clean Holdings and Qorvo’s 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 1.20 $74.66 million $1.39 19.40
Qorvo $2.97 billion 3.23 $789.88 million ($0.34) -222.02

Qorvo has higher revenue and earnings than Ultra Clean Holdings. Qorvo 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.

Volatility and Risk

Ultra Clean Holdings has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500. Comparatively, Qorvo has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.

Profitability

This table compares Ultra Clean Holdings and Qorvo’s 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%
Qorvo -1.40% 10.10% 7.54%

Summary

Ultra Clean Holdings beats Qorvo on 8 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.

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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