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.
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.
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%|
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.
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.
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