Spectra7 Microsystems (OTCMKTS:SPVNF) and Ultra Clean (NASDAQ:UCTT) Critical Review

Spectra7 Microsystems (OTCMKTS:SPVNF) and Ultra Clean (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 profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Insider & Institutional Ownership

33.2% of Spectra7 Microsystems shares are held by institutional investors. Comparatively, 83.6% of Ultra Clean shares are held by institutional investors. 2.1% of Ultra Clean shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Spectra7 Microsystems and Ultra Clean, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spectra7 Microsystems	0	0	0	0	N/A
Ultra Clean	0	0	4	0	3.00

Ultra Clean has a consensus price target of $48.33, suggesting a potential upside of 87.48%. Given Ultra Clean’s higher probable upside, analysts clearly believe Ultra Clean is more favorable than Spectra7 Microsystems.

Profitability

This table compares Spectra7 Microsystems and Ultra Clean’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spectra7 Microsystems	N/A	N/A	N/A
Ultra Clean	0.03%	5.31%	2.59%

Earnings & Valuation

This table compares Spectra7 Microsystems and Ultra Clean’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spectra7 Microsystems	N/A	N/A	N/A	($0.46)	-1.08
Ultra Clean	$2.37 billion	0.49	$40.40 million	N/A	N/A

Ultra Clean has higher revenue and earnings than Spectra7 Microsystems.

Summary

Ultra Clean beats Spectra7 Microsystems on 9 of the 9 factors compared between the two stocks.

About Spectra7 Microsystems

Spectra7 Microsystems Inc. operates as an analog semiconductor company in Canada and China. The company offers virtual reality (VR) products, including VR7050 to enable lightweight and ultra-thin active interconnects for gesture recognition and motion control backhaul; augmented reality (AR) -Connect, an integrated cable, connector, and embedded chipset product line for AR vision systems and wearable computing devices; and DreamWeVR, includes VR8181, VR8050, VR8200 and VR8300 chips to support high-bandwidth, near-zero latency VR head-mounted displays, and AR glasses. It also provides GaugeChanger that allows copper to extend much longer lengths without the cost and power penalty of optics that are used in data centers; and USB 3.2 consumer interconnects for use in ultra-thin laptops, tablets, mobile devices, solid-state disks, and wearable computing devices. Spectra7 Microsystems Inc. is headquartered in San Jose, California.

About Ultra Clean

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. Ultra Clean Holdings, Inc. was founded in 1991 and is headquartered in Hayward, California.