EMCORE (NASDAQ:EMKR – Get Free Report) and Ultra Clean (NASDAQ:UCTT – Get Free Report) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitability.
Analyst Ratings
This is a summary of recent ratings and target prices for EMCORE and Ultra Clean, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| EMCORE | 0 | 1 | 0 | 0 | 2.00 |
| Ultra Clean | 0 | 0 | 4 | 0 | 3.00 |
EMCORE presently has a consensus price target of $3.00, indicating a potential downside of 3.23%. Ultra Clean has a consensus price target of $37.00, indicating a potential upside of 73.38%. Given Ultra Clean’s stronger consensus rating and higher probable upside, analysts clearly believe Ultra Clean is more favorable than EMCORE.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| EMCORE | $81.08 million | 0.35 | -$31.24 million | ($2.92) | -1.06 |
| Ultra Clean | $2.14 billion | 0.45 | -$31.10 million | $0.62 | 34.42 |
Ultra Clean has higher revenue and earnings than EMCORE. EMCORE 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 and Volatility
EMCORE has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500. Comparatively, Ultra Clean has a beta of 2.05, meaning that its share price is 105% more volatile than the S&P 500.
Profitability
This table compares EMCORE and Ultra Clean’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| EMCORE | -42.00% | -24.27% | -12.59% |
| Ultra Clean | 0.18% | 4.08% | 1.94% |
Institutional & Insider Ownership
65.7% of EMCORE shares are owned by institutional investors. Comparatively, 96.1% of Ultra Clean shares are owned by institutional investors. 0.9% of EMCORE shares are owned by insiders. Comparatively, 1.9% of Ultra Clean shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Ultra Clean beats EMCORE on 14 of the 14 factors compared between the two stocks.
About EMCORE
EMCORE Corporation, together with its subsidiaries, designs and manufactures fiber optic gyro, ring laser gyro, and micro electromechanical system-based inertial sensors and systems in the United States and internationally. It offers navigation system and inertial sensing products, such as gyroscopes and multi-axis sensors, inertial measurement units, fiber optic gyroscopes, quartz micro electromechanical systems, inertial navigation systems, tactical navigation, and naval and amphibious navigation, as well as radar positioning and pointing systems, and battlefield/artillery survey systems. The company sells its products through direct sales force, application engineers, third-party sales representatives, and distributors. EMCORE Corporation was founded in 1984 and is headquartered in Alhambra, 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. The company was founded in 1991 and is headquartered in Hayward, California.
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