Ultra Clean (NASDAQ:UCTT) and Rockley Photonics (NYSE:RKLY) Critical Contrast

Ultra Clean (NASDAQ:UCTTGet Rating) and Rockley Photonics (NYSE:RKLYGet Rating) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, earnings, risk, valuation, profitability and analyst recommendations.

Earnings and Valuation

This table compares Ultra Clean and Rockley Photonics’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ultra Clean $2.10 billion 0.63 $119.50 million $2.70 10.93
Rockley Photonics $8.21 million 34.10 -$168.01 million ($0.99) -2.19

Ultra Clean has higher revenue and earnings than Rockley Photonics. Rockley Photonics is trading at a lower price-to-earnings ratio than Ultra Clean, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Ultra Clean has a beta of 2.05, suggesting that its stock price is 105% more volatile than the S&P 500. Comparatively, Rockley Photonics has a beta of 0.08, suggesting that its stock price is 92% less volatile than the S&P 500.

Insider & Institutional Ownership

83.5% of Ultra Clean shares are owned by institutional investors. Comparatively, 12.4% of Rockley Photonics shares are owned by institutional investors. 2.3% of Ultra Clean shares are owned by company insiders. Comparatively, 16.2% of Rockley Photonics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Ultra Clean and Rockley Photonics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ultra Clean 5.44% 20.43% 9.02%
Rockley Photonics N/A -236.22% -67.60%

Analyst Recommendations

This is a breakdown of current ratings for Ultra Clean and Rockley Photonics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ultra Clean 0 0 3 0 3.00
Rockley Photonics 0 1 4 0 2.80

Ultra Clean currently has a consensus target price of $59.00, indicating a potential upside of 100.00%. Rockley Photonics has a consensus target price of $11.80, indicating a potential upside of 443.78%. Given Rockley Photonics’ higher possible upside, analysts clearly believe Rockley Photonics is more favorable than Ultra Clean.

Summary

Ultra Clean beats Rockley Photonics on 10 of the 14 factors compared between the two stocks.

About Ultra Clean (Get Rating)

Ultra Clean Holdings, Inc. develops and supplies critical subsystems, components and parts, and ultra-high purity cleaning and analytical services for the semiconductor industry in the United States and internationally. The company provides ultra-clean valves, high purity connectors, industrial process connectors and valves, pneumatic actuators, manifolds and safety solutions, hoses, pressure gauges, and gas line and component heaters; chemical delivery modules that deliver gases and reactive chemicals in a liquid or gaseous form from a centralized subsystem to the reaction chamber; and gas delivery systems, such as weldments, filters, mass flow controllers, regulators, pressure transducers and valves, component heaters, and an integrated electronic and/or pneumatic control system. It also offers various industrial and automation production equipment; fluid delivery systems consist 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; top-plate assemblies; frame assemblies; process modules, a subsystem of semiconductor manufacturing tools that process integrated circuits onto wafers; 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. The company was founded in 1991 and is headquartered in Hayward, California.

About Rockley Photonics (Get Rating)

Rockley Photonics Holdings Limited develops and supplies silicon photonics in the United Kingdom and internationally. It offers a platform, which comprises photonic integrated circuits in silicon with integrated III-V devices; application-specific electronic integrated circuits; photonic and electronic co-packaging, which are supported by and coupled with biosensing algorithms, artificial intelligence, cloud analytics, firmware/software, system architecture, and hardware design. The company also provides a biosensing platform for consumer wellness, long-term health trend monitoring, patient monitoring, early disease detection, nutrition management, and treatment of certain chronic diseases. Rockley Photonics Holdings Limited was founded in 2013 and is headquartered in Altrincham, the United Kingdom.

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