Ultra Clean Holdings (NASDAQ: UCTT) and Amkor Technology (NASDAQ:AMKR) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitabiliy.
Insider & Institutional Ownership
85.9% of Ultra Clean Holdings shares are owned by institutional investors. Comparatively, 38.9% of Amkor Technology shares are owned by institutional investors. 2.6% of Ultra Clean Holdings shares are owned by company insiders. Comparatively, 58.1% of Amkor Technology shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent ratings for Ultra Clean Holdings and Amkor Technology, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ultra Clean Holdings | 0 | 3 | 3 | 0 | 2.50 |
| Amkor Technology | 1 | 2 | 0 | 0 | 1.67 |
Ultra Clean Holdings presently has a consensus price target of $28.40, suggesting a potential upside of 15.73%. Amkor Technology has a consensus price target of $9.10, suggesting a potential downside of 15.82%. Given Ultra Clean Holdings’ stronger consensus rating and higher possible upside, analysts clearly believe Ultra Clean Holdings is more favorable than Amkor Technology.
Earnings and Valuation
This table compares Ultra Clean Holdings and Amkor Technology’s 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 | 1.24 | $54.21 million | $0.82 | 29.93 |
| Amkor Technology | $3.94 billion | 0.66 | $829.47 million | $0.65 | 16.63 |
Amkor Technology has higher revenue and earnings than Ultra Clean Holdings. Amkor Technology 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 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, Amkor Technology has a beta of 2.52, meaning that its share price is 152% more volatile than the S&P 500.
Profitability
This table compares Ultra Clean Holdings and Amkor Technology’s 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% |
| Amkor Technology | 3.94% | 11.44% | 3.73% |
Summary
Ultra Clean Holdings beats Amkor Technology on 10 of the 14 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 Amkor Technology
Amkor Technology, Inc. is a provider of outsourced semiconductor packaging and test services. The Company’s packaging and test services are designed to meet application and chip specific requirements, including the type of interconnect technology; size, thickness and electrical, and mechanical and thermal performance. It provides packaging and test services, including semiconductor wafer bump, wafer probe, wafer backgrind, package design, packaging, system-level, and final test and drop shipment services. The Company provides its services to integrated device manufacturers (IDMs), fabless semiconductor companies and contract foundries. IDMs design, manufacture, package and test semiconductors in their own facilities. The Company offers a range of advanced and mainstream packaging and test services. The Company’s mainstream packages include leadframe packages, substrate-based wirebond packages and micro-electro-mechanical systems packages.
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.
