Sumco (OTCMKTS:SUMCF – Get Free Report) and Ultra Clean (NASDAQ:UCTT – Get Free Report) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.
Profitability
This table compares Sumco and Ultra Clean’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sumco | N/A | N/A | N/A |
| Ultra Clean | 1.20% | 10.30% | 4.96% |
Institutional & Insider Ownership
17.5% of Sumco shares are owned by institutional investors. Comparatively, 83.6% of Ultra Clean shares are owned by institutional investors. 2.1% of Ultra Clean shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sumco | 0 | 0 | 2 | 0 | 3.00 |
| Ultra Clean | 0 | 0 | 4 | 0 | 3.00 |
Ultra Clean has a consensus price target of $42.50, suggesting a potential upside of 48.45%. Given Ultra Clean’s higher possible upside, analysts plainly believe Ultra Clean is more favorable than Sumco.
Earnings and Valuation
This table compares Sumco and Ultra Clean’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sumco | N/A | N/A | N/A | 14.15 | 0.94 |
| Ultra Clean | $2.06 billion | 0.62 | $40.40 million | $0.53 | 54.02 |
Ultra Clean has higher revenue and earnings than Sumco. Sumco is trading at a lower price-to-earnings ratio than Ultra Clean, indicating that it is currently the more affordable of the two stocks.
Summary
Ultra Clean beats Sumco on 9 of the 10 factors compared between the two stocks.
About Sumco
Sumco Corporation, together with its subsidiaries, manufactures and sells silicon wafers for the semiconductor industry primarily in Japan, the United States, China, Taiwan, Korea, and internationally. It provides monocrystalline ingots, as well as polished, annealed, epitaxial, junction isolated, silicon-on-insulator, and reclaimed polished wafers. The company was formerly known as Sumitomo Mitsubishi Silicon Corp. and changed its name to Sumco Corporation in August 2005. Sumco Corporation was incorporated in 1999 and is headquartered in Tokyo, Japan.
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.
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