Ultra Clean (NASDAQ:UCTT) and Marvell Technology Group (NASDAQ:MRVL) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.
This is a summary of current ratings for Ultra Clean and Marvell Technology Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Marvell Technology Group||2||16||2.89|
Ultra Clean currently has a consensus target price of $20.25, indicating a potential upside of 108.12%. Marvell Technology Group has a consensus target price of $25.06, indicating a potential upside of 48.47%. Given Ultra Clean’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Ultra Clean is more favorable than Marvell Technology Group.
This table compares Ultra Clean and Marvell Technology Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Marvell Technology Group||4.76%||9.45%||7.41%|
Volatility & Risk
Ultra Clean has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, Marvell Technology Group has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500.
Marvell Technology Group pays an annual dividend of $0.24 per share and has a dividend yield of 1.4%. Ultra Clean does not pay a dividend. Marvell Technology Group pays out 23.1% of its earnings in the form of a dividend. Marvell Technology Group has raised its dividend for 3 consecutive years.
Insider and Institutional Ownership
83.5% of Ultra Clean shares are owned by institutional investors. Comparatively, 95.2% of Marvell Technology Group shares are owned by institutional investors. 1.9% of Ultra Clean shares are owned by insiders. Comparatively, 0.1% of Marvell Technology Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Ultra Clean and Marvell Technology Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ultra Clean||$924.35 million||0.41||$75.08 million||$2.34||4.16|
|Marvell Technology Group||$2.41 billion||4.61||$520.83 million||$1.04||16.23|
Marvell Technology Group has higher revenue and earnings than Ultra Clean. Ultra Clean is trading at a lower price-to-earnings ratio than Marvell Technology Group, indicating that it is currently the more affordable of the two stocks.
Marvell Technology Group beats Ultra Clean on 9 of the 17 factors compared between the two stocks.
About Ultra Clean
Ultra Clean Holdings, Inc. designs, develops, prototypes, engineers, manufactures, and tests production tools, modules, and subsystems for the semiconductor and display capital equipment industries primarily in North America, Asia, and Europe. It offers precision robotic systems that are used when accurate controlled motion is required; gas delivery systems, which include one or more gas lines consisting of small diameter internally polished stainless steel tubing products, filters, mass flow controllers, regulators, pressure transducers and valves, component heaters, and an integrated electronic and/or pneumatic control system; and various industrial and automation production equipment products. The company also provides subsystems, such as wafer cleaning modules; chemical delivery modules that deliver gases and reactive chemicals in a liquid or gaseous form from a centralized subsystem to the reaction chamber; frame assemblies, which are support structures fabricated from steel tubing or folded sheet metal; and top-plate assemblies. In addition, it offers fluid delivery systems consists of one or more chemical delivery units; process modules, which are the subsystems of semiconductor manufacturing tools that process integrated circuits onto wafers; and other high level assemblies. The company primarily serves original equipment manufacturing customers in the semiconductor capital equipment, consumer, medical, energy, industrial, and research industries. Ultra Clean Holding, Inc. was founded in 1991 and is headquartered in Hayward, California.
About Marvell Technology Group
Marvell Technology Group Ltd. engages in the business of providing semiconductors to high-performance application-specific standard products. It focuses on the development of complex System-on-a-Chip devices leveraging extensive technology portfolio of intellectual property in the areas of analog, mixed-signal, digital signal processing, and embedded and stand alone integrated circuits. The company’s product portfolio includes devices for data storage, enterprise-class Ethernet data switching, Ethernet physical-layer transceivers, mobile handsets, connectivity and other consumer electronics. Marvell Technology Group was founded by Sehat Sutardja, Weili Dai, and Pantas Sutardja in January 1995 and is headquartered in Hamilton, Bermuda.
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