Ultratech (UTEK) vs. Its Competitors Critical Review

Ultratech (NASDAQ: UTEK) is one of 21 publicly-traded companies in the “Semiconductor Equipment & Testing” industry, but how does it weigh in compared to its competitors? We will compare Ultratech to related businesses based on the strength of its institutional ownership, valuation, earnings, risk, profitability, dividends and analyst recommendations.

Profitability

This table compares Ultratech and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ultratech 5.17% 3.22% 2.83%
Ultratech Competitors 6.59% 12.25% 7.10%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Ultratech and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ultratech 0 3 0 0 2.00
Ultratech Competitors 57 491 1264 20 2.68

Ultratech presently has a consensus price target of $28.88, suggesting a potential downside of 4.47%. As a group, “Semiconductor Equipment & Testing” companies have a potential upside of 8.20%. Given Ultratech’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Ultratech has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares Ultratech and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Ultratech N/A N/A 71.98
Ultratech Competitors $1.64 billion $379.05 million 10.35

Ultratech’s competitors have higher revenue and earnings than Ultratech. Ultratech is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

Ultratech has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500. Comparatively, Ultratech’s competitors have a beta of 1.22, suggesting that their average share price is 22% more volatile than the S&P 500.

Institutional & Insider Ownership

92.7% of Ultratech shares are owned by institutional investors. Comparatively, 79.8% of shares of all “Semiconductor Equipment & Testing” companies are owned by institutional investors. 5.9% of Ultratech shares are owned by company insiders. Comparatively, 13.9% of shares of all “Semiconductor Equipment & Testing” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Ultratech competitors beat Ultratech on 10 of the 11 factors compared.

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.

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