Ambarella, Inc. (AMBA) vs Ultra Clean Holdings, Inc. (UCTT)

Ambarella, Inc. and Ultra Clean Holdings, Inc. are both Semiconductor Equipment & Materials companies. Ambarella, Inc. is the larger, with a market value of $2.4B against $1.8B — 1.4× the size. Ambarella, Inc. has negative trailing earnings, so its P/E is not meaningful; Ultra Clean Holdings, Inc. trades at 60.9×. Ambarella, Inc. grew revenue faster over the last twelve months: 20.0% against 15.8%. Ultra Clean Holdings, Inc. has the higher net margin (1.09% vs −13.5%) and the higher return on invested capital (5.60% vs −11.2%). Across the 18 metrics below, Ultra Clean Holdings, Inc. leads on 10 and Ambarella, Inc. on 8.

Valuation

Metric AMBA UCTT Semiconductor Equipment & Materials median
P/E n/m 60.90 33.70
P/S 5.85 0.70 4.22
P/B 3.94 2.10 2.94
Price to free cash flow n/m n/m 31.49
EV/EBITDA n/m 11.22 22.64
EV/Sales 5.20 0.85 4.97
Earnings yield (2.32%) 1.64% 2.02%
Free cash flow yield (0.23%) (9.77%) 2.27%

Profitability

Metric AMBA UCTT Semiconductor Equipment & Materials median
Gross margin 58.52% 16.11% 46.86%
Operating margin (14.90%) 4.32% 12.02%
Net margin (13.48%) 1.09% 10.16%
Free cash flow margin 2.33% (6.84%) 6.73%
Return on equity (9.41%) 3.34% 5.31%
Return on assets (7.58%) 1.39% 4.10%
Return on invested capital (11.19%) 5.60% 6.36%

Growth

Metric AMBA UCTT Semiconductor Equipment & Materials median
Revenue growth (TTM) 20.04% 15.79% 15.82%
EPS growth (last fiscal year) 37.32% (869.23%) (4.56%)
Revenue growth, 5-year CAGR 11.87% 7.99% 10.11%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric AMBA UCTT Semiconductor Equipment & Materials median
Debt to equity 0.00 0.78 0.09
Current ratio 2.85 2.79 3.56
Net debt to EBITDA 5.48 1.35 (0.49)

Dividend

Metric AMBA UCTT Semiconductor Equipment & Materials median
Dividend yield — — 0.59%
Payout ratio — — 0.16

Size

Metric AMBA UCTT Semiconductor Equipment & Materials median
Market cap 2.44b 1.78b 3.04b

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