Ultratech (NASDAQ: UTEK) and ASML (NASDAQ:ASML) are both technology companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.
ASML pays an annual dividend of $1.11 per share and has a dividend yield of 0.6%. Ultratech does not pay a dividend. ASML pays out 20.2% of its earnings in the form of a dividend.
This is a summary of recent ratings and price targets for Ultratech and ASML, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ultratech currently has a consensus target price of $29.00, suggesting a potential downside of 4.07%. ASML has a consensus target price of $191.00, suggesting a potential downside of 0.64%. Given ASML’s stronger consensus rating and higher probable upside, analysts plainly believe ASML is more favorable than Ultratech.
This table compares Ultratech and ASML’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Ultratech and ASML’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ASML||$10.23 billion||8.03||$2.39 billion||$5.49||35.01|
ASML has higher revenue and earnings than Ultratech. ASML is trading at a lower price-to-earnings ratio than Ultratech, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
92.7% of Ultratech shares are held by institutional investors. Comparatively, 16.7% of ASML shares are held by institutional investors. 5.9% of Ultratech shares are held by 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 & Risk
Ultratech has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, ASML has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.
ASML beats Ultratech on 10 of the 14 factors compared between the two stocks.
Ultratech Company Profile
Ultratech, Inc. (Ultratech) develops, manufactures and markets photolithography, laser thermal processing and inspection equipment. The Company operates through the manufacture and distribution of capital equipment to manufacturers of integrated circuits and nanotechnology components segment. The Company serves manufacturers of semiconductor devices, including packaging processes and various nanotechnology components such as laser diodes, high-brightness light emitting diodes (HBLEDs) and micro-electro-mechanical systems (MEMS), as well as atomic layer deposition systems (ALD) for customers located throughout the world. It has operations in North America, Europe, Singapore, Japan, Taiwan, Korea and the rest of Asia. The Company supplies step-and-repeat photolithography systems based on one-to-one (1X) imaging technology to customers located throughout North America, Europe and Asia.
ASML Company Profile
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.
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