ASML Holding N.V. (NASDAQ: ASML) and Ultra Clean Holdings (NASDAQ:UCTT) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.
This table compares ASML Holding N.V. and Ultra Clean Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|ASML Holding N.V.||23.81%||19.82%||11.51%|
|Ultra Clean Holdings||7.55%||28.77%||16.02%|
Earnings and Valuation
This table compares ASML Holding N.V. and Ultra Clean Holdings’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|ASML Holding N.V.||$7.52 billion||10.27||$1.63 billion||$5.05||35.56|
|Ultra Clean Holdings||$562.76 million||1.40||$10.05 million||$1.88||12.49|
ASML Holding N.V. has higher revenue and earnings than Ultra Clean Holdings. Ultra Clean Holdings is trading at a lower price-to-earnings ratio than ASML Holding N.V., indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
16.1% of ASML Holding N.V. shares are held by institutional investors. Comparatively, 76.3% of Ultra Clean Holdings shares are held by institutional investors. 2.6% of Ultra Clean Holdings shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Volatility and Risk
ASML Holding N.V. has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, Ultra Clean Holdings has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.
This is a breakdown of recent ratings and recommmendations for ASML Holding N.V. and Ultra Clean Holdings, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|ASML Holding N.V.||0||5||11||0||2.69|
|Ultra Clean Holdings||0||2||4||0||2.67|
ASML Holding N.V. presently has a consensus target price of $176.17, indicating a potential downside of 1.91%. Ultra Clean Holdings has a consensus target price of $31.00, indicating a potential upside of 32.03%. Given Ultra Clean Holdings’ higher probable upside, analysts plainly believe Ultra Clean Holdings is more favorable than ASML Holding N.V..
ASML Holding N.V. pays an annual dividend of $1.11 per share and has a dividend yield of 0.6%. Ultra Clean Holdings does not pay a dividend. ASML Holding N.V. pays out 22.0% of its earnings in the form of a dividend.
ASML Holding N.V. beats Ultra Clean Holdings on 10 of the 16 factors compared between the two stocks.
About ASML Holding N.V.
ASML Holding N.V. is a holding company. The Company is a manufacturer of chip-making equipment. The Company is engaged in the development, production, marketing, selling and servicing of semiconductor equipment systems, consisting of lithography systems. The Company’s products include systems, and installed base products and services. The Company’s principal operations are in the Netherlands, the United States and Asia. The Company offers TWINSCAN systems, equipped with lithography system with a mercury lamp as light source (i-line), Krypton Fluoride (KrF) and Argon Fluoride (ArF) light sources for 300 millimeter processing wafers for manufacturing environments for which imaging at a small resolution is required. TWINSCAN systems also include immersion lithography systems (TWINSCAN immersion systems). The Company also offers NXE systems, which are equipped with extreme ultraviolet (EUV) light source technology. The Company offers YieldStar, a wafer metrology system.
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.
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