Ultra Clean (NASDAQ:UCTT) and Alpha and Omega Semiconductor (NASDAQ:AOSL) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.
Valuation & Earnings
This table compares Ultra Clean and Alpha and Omega Semiconductor’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ultra Clean||$1.07 billion||1.92||-$9.40 million||$0.91||55.30|
|Alpha and Omega Semiconductor||$464.91 million||1.72||-$6.60 million||$0.47||66.04|
Alpha and Omega Semiconductor has lower revenue, but higher earnings than Ultra Clean. Ultra Clean is trading at a lower price-to-earnings ratio than Alpha and Omega Semiconductor, indicating that it is currently the more affordable of the two stocks.
This table compares Ultra Clean and Alpha and Omega Semiconductor’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alpha and Omega Semiconductor||0.39%||4.47%||2.50%|
This is a breakdown of current recommendations and price targets for Ultra Clean and Alpha and Omega Semiconductor, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alpha and Omega Semiconductor||0||0||2||0||3.00|
Ultra Clean presently has a consensus price target of $67.00, suggesting a potential upside of 33.15%. Alpha and Omega Semiconductor has a consensus price target of $46.50, suggesting a potential upside of 49.81%. Given Alpha and Omega Semiconductor’s higher possible upside, analysts plainly believe Alpha and Omega Semiconductor is more favorable than Ultra Clean.
Institutional & Insider Ownership
79.9% of Ultra Clean shares are owned by institutional investors. Comparatively, 58.7% of Alpha and Omega Semiconductor shares are owned by institutional investors. 2.2% of Ultra Clean shares are owned by company insiders. Comparatively, 21.6% of Alpha and Omega Semiconductor shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility and Risk
Ultra Clean has a beta of 1.98, suggesting that its share price is 98% more volatile than the S&P 500. Comparatively, Alpha and Omega Semiconductor has a beta of 2.53, suggesting that its share price is 153% more volatile than the S&P 500.
Ultra Clean beats Alpha and Omega Semiconductor on 8 of the 13 factors compared between the two stocks.
Ultra Clean Company Profile
Ultra Clean Holdings, Inc. designs, engineers, and manufactures production tools, modules, and subsystems for the semiconductor and display capital equipment markets in the United States and internationally. The company provides subsystems, such as wafer cleaning modules; chemical delivery modules that deliver gases and reactive chemicals in a liquid or gaseous form from a centralized subsystem to the reaction chamber; frame assemblies; process modules, a subsystems of semiconductor manufacturing tools that process integrated circuits onto wafers; and top-plate assemblies. It also offers various industrial and automation production equipment products; gas delivery systems, which include one or more gas lines, such as weldments, filters, mass flow controllers, regulators, pressure transducers and valves, component heaters, and an integrated electronic and/or pneumatic control system; fluid delivery systems consists 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 that are used when accurate controlled motion is required; 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. Ultra Clean Holdings, Inc. was founded in 1991 and is headquartered in Hayward, California.
Alpha and Omega Semiconductor Company Profile
Alpha and Omega Semiconductor Limited designs, develops, and supplies power semiconductor products for computing, consumer electronics, communication, and industrial applications. The company offers power discrete products, including metal-oxide-semiconductor field-effect transistors (MOSFET), SRFETs, XSFET, electrostatic discharge, protected MOSFETs, high and mid-voltage MOSFETs, and insulated gate bipolar transistors. Its power discrete products are used in smart phone chargers, battery packs, notebooks, desktop and servers, data centers, base stations, graphics card, game boxes, TVs, AC adapters, power supplies, motor control, power tools, e-vehicles, white goods and industrial motor drives, UPS systems, solar inverters, and industrial welding. The company also provides power ICs that deliver power, as well as control and regulate the power management variables, such as the flow of current and level of voltage. Its power ICs are used in flat panel displays, TVs, Notebooks, graphic cards, servers, DVD/Blu-Ray players, set-top boxes, and networking equipment. In addition, the company offers aMOS5 family for quick charger, adapter, PC power, server, industrial power, telecom, and datacenter applications; and Transient Voltage Suppressors for notebooks and mobile devices. Further, it provides EZBuck regulators for chipsets used in TVs, servers, data storage systems, networking, and other compact PC systems; SOA MOSFET for hot swap applications; and XSPairFET buck-boost MOSFET for type-c applications, such as notebook, USB hubs, and power banks. Additionally, the company offers input protection switches and TO-leadless packaging technologies. The company operates in Hong Kong, China, South Korea, the United States, and internationally. Alpha and Omega Semiconductor Limited was incorporated in 2000 and is headquartered in Sunnyvale, California.