AXT Inc (AXTI) vs Ultra Clean Holdings, Inc. (UCTT)

AXT Inc and Ultra Clean Holdings, Inc. are both Semiconductor Equipment & Materials companies. AXT Inc is the larger, with a market value of $5.1B against $3.5B — 1.5× the size. Ultra Clean Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; AXT Inc trades at 2,631×. AXT Inc grew revenue faster over the last twelve months: 45.8% against 2.52%. AXT Inc has the higher net margin (3.23% vs −1.07%) and the lower return on invested capital (0.44% vs 3.68%). Across the 19 metrics below, AXT Inc leads on 11 and Ultra Clean Holdings, Inc. on 8.

Valuation

Metric AXTI UCTT Semiconductor Equipment & Materials median
P/E 2,631.33 n/m 54.39
P/S 38.51 1.60 6.08
P/B 5.32 4.89 4.89
Price to free cash flow n/m n/m 60.92
EV/EBITDA 330.45 27.09 39.95
EV/Sales 35.61 1.76 6.36
Earnings yield 0.04% (0.67%) 1.14%
Free cash flow yield (0.40%) (3.23%) 1.28%

Profitability

Metric AXTI UCTT Semiconductor Equipment & Materials median
Gross margin 32.18% 15.83% 43.95%
Operating margin 3.09% 2.84% 10.32%
Net margin 3.23% (1.07%) 7.45%
Free cash flow margin (15.59%) (5.15%) 6.77%
Return on equity 0.73% (3.11%) 4.78%
Return on assets 0.57% (1.28%) 3.62%
Return on invested capital 0.44% 3.68% 6.10%

Growth

Metric AXTI UCTT Semiconductor Equipment & Materials median
Revenue growth (TTM) 45.81% 2.52% 14.60%
EPS growth (last fiscal year) (81.48%) (869.23%) —
Revenue growth, 5-year CAGR (1.52%) 7.99% 8.85%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric AXTI UCTT Semiconductor Equipment & Materials median
Debt to equity 0.09 0.84 0.09
Current ratio 4.77 2.73 3.66
Net debt to EBITDA 5.10 1.35 (0.49)

Dividend

Metric AXTI UCTT Semiconductor Equipment & Materials median
Dividend yield — — 0.85%
Payout ratio 0.00 0.00 0.00

Size

Metric AXTI UCTT Semiconductor Equipment & Materials median
Market cap 5.14b 3.52b 4.63b

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