Ultra Clean Holdings, Inc. (UCTT) vs Veeco Instruments Inc. (VECO)

Ultra Clean Holdings, Inc. and Veeco Instruments Inc. are both Semiconductor Equipment & Materials companies. Ultra Clean Holdings, Inc. and Veeco Instruments Inc. are of similar size ($2.8B and $2.5B). Ultra Clean Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; Veeco Instruments Inc. trades at 113×. Ultra Clean Holdings, Inc. grew revenue faster over the last twelve months: 2.52% against −2.52%. Veeco Instruments Inc. has the higher net margin (3.35% vs −1.07%) and the lower return on invested capital (1.64% vs 3.68%). Across the 19 metrics below, Veeco Instruments Inc. leads on 12 and Ultra Clean Holdings, Inc. on 7.

Valuation

Metric UCTT VECO Semiconductor Equipment & Materials median
P/E n/m 112.62 45.03
P/S 1.05 3.82 4.64
P/B 3.21 2.89 3.22
Price to free cash flow n/m 30.65 48.18
EV/EBITDA 18.63 63.71 33.11
EV/Sales 1.21 3.57 5.52
Earnings yield (1.02%) 0.89% 1.41%
Free cash flow yield (4.92%) 3.26% 1.67%

Profitability

Metric UCTT VECO Semiconductor Equipment & Materials median
Gross margin 15.83% 37.92% 43.95%
Operating margin 2.84% 2.69% 10.32%
Net margin (1.07%) 3.35% 7.45%
Free cash flow margin (5.15%) 12.47% 6.77%
Return on equity (3.11%) 2.60% 4.78%
Return on assets (1.28%) 1.70% 3.62%
Return on invested capital 3.68% 1.64% 6.10%

Growth

Metric UCTT VECO Semiconductor Equipment & Materials median
Revenue growth (TTM) 2.52% (2.52%) 14.60%
EPS growth (last fiscal year) (869.23%) (52.03%) (4.56%)
Revenue growth, 5-year CAGR 7.99% 7.90% 10.11%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric UCTT VECO Semiconductor Equipment & Materials median
Debt to equity 0.84 0.25 0.09
Current ratio 2.73 3.93 3.66
Net debt to EBITDA 1.35 (2.95) (0.49)

Dividend

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

Size

Metric UCTT VECO Semiconductor Equipment & Materials median
Market cap 2.53b 2.76b 3.80b

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