Comparing Monolithic Power Systems (MPWR) and Ultra Clean Holdings (UCTT)

Ultra Clean Holdings (NASDAQ: UCTT) and Monolithic Power Systems (NASDAQ:MPWR) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, risk, valuation, profitabiliy and earnings.

Risk and Volatility

Ultra Clean Holdings has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Monolithic Power Systems has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500.

Dividends

Monolithic Power Systems pays an annual dividend of $0.80 per share and has a dividend yield of 0.8%. Ultra Clean Holdings does not pay a dividend. Monolithic Power Systems pays out 60.2% of its earnings in the form of a dividend.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Ultra Clean Holdings $655.12 million 1.04 $54.21 million $0.82 25.17
Monolithic Power Systems $404.52 million 9.91 $73.05 million $1.33 73.08

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

Profitability

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

Net Margins Return on Equity Return on Assets
Ultra Clean Holdings 4.22% 17.24% 9.71%
Monolithic Power Systems 14.00% 13.83% 11.65%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Ultra Clean Holdings and Monolithic Power Systems, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ultra Clean Holdings 0 2 3 0 2.60
Monolithic Power Systems 0 0 6 1 3.14

Ultra Clean Holdings presently has a consensus price target of $18.88, suggesting a potential downside of 8.55%. Monolithic Power Systems has a consensus price target of $97.80, suggesting a potential upside of 0.63%. Given Monolithic Power Systems’ stronger consensus rating and higher possible upside, analysts plainly believe Monolithic Power Systems is more favorable than Ultra Clean Holdings.

Insider & Institutional Ownership

85.3% of Ultra Clean Holdings shares are owned by institutional investors. Comparatively, 93.1% of Monolithic Power Systems shares are owned by institutional investors. 2.6% of Ultra Clean Holdings shares are owned by company insiders. Comparatively, 5.0% of Monolithic Power Systems shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Monolithic Power Systems beats Ultra Clean Holdings on 14 of the 17 factors compared between the two stocks.

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.

About Monolithic Power Systems

Monolithic Power Systems, Inc. designs, develops and markets integrated power semiconductor solutions and power delivery architectures. The Company operates in the design, development, marketing and sale of power solutions for the communications, storage and computing, consumer and industrial markets segment. The Company’s product families include Direct Current (DC) to DC Products, and Lighting Control Products. The Company’s DC to DC integrated circuits (ICs) are used to convert and control voltages within a range of electronic systems, such as portable electronic devices, wireless local area network (LAN) access points, computers, monitors, automobiles and medical equipment. Lighting control ICs are used in backlighting and general illumination products. In addition to Alternating Current (AC)/DC offline solutions for lighting illumination applications, the Company also offers AC/DC power conversion solutions for end products that plug into a wall outlet.

This story was originally published by sleekmoney (https://sleekmoney.com) and is the sole property of sleekmoney. If you are reading this article on another website, that means this article was illegally copied and re-published to this website in violation of U.S. and International copyright law. You can view the original version of this story at https://sleekmoney.com/comparing-monolithic-power-systems-mpwr-and-ultra-clean-holdings-uctt/1916094.html

Receive News & Ratings for Ultra Clean Holdings Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ultra Clean Holdings Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

 

Leave a Reply

Your email address will not be published. Required fields are marked *