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 $3.1B against $2.5B — 1.2× the size. Ultra Clean Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; IPG Photonics Corporation trades at 108×. IPG Photonics Corporation grew revenue faster over the last twelve months: 13.0% against 2.52%. IPG Photonics Corporation has the higher net margin (2.58% vs −1.07%) and the lower return on invested capital (0.40% vs 3.68%). Across the 20 metrics below, IPG Photonics Corporation leads on 13 and Ultra Clean Holdings, Inc. on 7.

Valuation

Metric IPGP UCTT Semiconductor Equipment & Materials median
P/E 107.59 n/m 45.03
P/S 2.82 1.05 4.64
P/B 1.42 3.21 3.22
Price to free cash flow 136.07 n/m 48.18
EV/EBITDA 35.64 18.63 33.11
EV/Sales 2.03 1.21 5.52
Earnings yield 0.93% (1.02%) 1.41%
Free cash flow yield 0.73% (4.92%) 1.67%

Profitability

Metric IPGP UCTT Semiconductor Equipment & Materials median
Gross margin 38.35% 15.83% 43.95%
Operating margin 0.75% 2.84% 10.32%
Net margin 2.58% (1.07%) 7.45%
Free cash flow margin 2.07% (5.15%) 6.77%
Return on equity 1.30% (3.11%) 4.78%
Return on assets 1.15% (1.28%) 3.62%
Return on invested capital 0.40% 3.68% 6.10%

Growth

Metric IPGP UCTT Semiconductor Equipment & Materials median
Revenue growth (TTM) 13.04% 2.52% 14.60%
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 0.84 0.09
Current ratio 6.18 2.73 3.66
Net debt to EBITDA (12.73) 1.35 (0.49)

Dividend

Metric IPGP UCTT Semiconductor Equipment & Materials median
Dividend yield — — 0.42%
Payout ratio — — 0.19

Size

Metric IPGP UCTT Semiconductor Equipment & Materials median
Market cap 3.14b 2.53b 3.80b

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