IPG Photonics Corporation (IPGP) vs Ultra Clean Holdings, Inc. (UCTT)

IPG Photonics Corporation and Ultra Clean Holdings, Inc. are both Semiconductor Equipment & Materials companies. IPG Photonics Corporation is the larger, with a market value of $2.6B against $1.8B — 1.5× the size. Ultra Clean Holdings, Inc. trades at the lower P/E: 60.9× against 65.0×. Ultra Clean Holdings, Inc. grew revenue faster over the last twelve months: 15.8% against 14.8%. IPG Photonics Corporation has the higher net margin (3.65% vs 1.09%) and the lower return on invested capital (1.06% vs 5.60%). Across the 21 metrics below, Ultra Clean Holdings, Inc. leads on 11 and IPG Photonics Corporation on 10.

Valuation

Metric IPGP UCTT Semiconductor Equipment & Materials median
P/E 64.97 60.90 33.70
P/S 2.39 0.70 4.22
P/B 1.23 2.10 2.94
Price to free cash flow 70.44 n/m 31.49
EV/EBITDA 23.54 11.22 22.64
EV/Sales 1.58 0.85 4.97
Earnings yield 1.54% 1.64% 2.02%
Free cash flow yield 1.42% (9.77%) 2.27%

Profitability

Metric IPGP UCTT Semiconductor Equipment & Materials median
Gross margin 38.71% 16.11% 46.86%
Operating margin 1.89% 4.32% 12.02%
Net margin 3.65% 1.09% 10.16%
Free cash flow margin 3.39% (6.84%) 6.73%
Return on equity 1.90% 3.34% 5.31%
Return on assets 1.66% 1.39% 4.10%
Return on invested capital 1.06% 5.60% 6.36%

Growth

Metric IPGP UCTT Semiconductor Equipment & Materials median
Revenue growth (TTM) 14.78% 15.79% 15.82%
EPS growth (last fiscal year) 117.85% (869.23%) (4.56%)
Revenue growth, 5-year CAGR (3.52%) 7.99% 10.11%
Net income growth, 5-year CAGR (27.90%) 0.00% 0.00%

Health

Metric IPGP UCTT Semiconductor Equipment & Materials median
Debt to equity 0.00 0.78 0.09
Current ratio 5.99 2.79 3.56
Net debt to EBITDA (12.73) 1.35 (0.49)

Dividend

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

Size

Metric IPGP UCTT Semiconductor Equipment & Materials median
Market cap 2.64b 1.78b 3.04b

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