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

Ultra Clean Holdings, Inc. and Veeco Instruments Inc. are both Semiconductor Equipment & Materials companies. Veeco Instruments Inc. is the larger, with a market value of $2.0B against $1.8B — 1.1× the size. Ultra Clean Holdings, Inc. trades at the lower P/E: 60.9× against 80.7×. Ultra Clean Holdings, Inc. grew revenue faster over the last twelve months: 15.8% against 6.58%. Ultra Clean Holdings, Inc. has the higher net margin (1.09% vs 0.00%) and the higher return on invested capital (5.60% vs 2.05%). Across the 20 metrics below, Ultra Clean Holdings, Inc. leads on 13 and Veeco Instruments Inc. on 7.

Valuation

Metric UCTT VECO Semiconductor Equipment & Materials median
P/E 60.90 80.74 33.70
P/S 0.70 2.85 4.22
P/B 2.10 2.24 2.94
Price to free cash flow n/m 16.46 31.49
EV/EBITDA 11.22 44.09 22.64
EV/Sales 0.85 2.54 4.97
Earnings yield 1.64% 1.24% 2.02%
Free cash flow yield (9.77%) 6.08% 2.27%

Profitability

Metric UCTT VECO Semiconductor Equipment & Materials median
Gross margin 16.11% 37.39% 46.86%
Operating margin 4.32% 3.02% 12.02%
Net margin 1.09% 0.00% 10.16%
Free cash flow margin (6.84%) 17.32% 6.73%
Return on equity 3.34% 0.00% 5.31%
Return on assets 1.39% 0.00% 4.10%
Return on invested capital 5.60% 2.05% 6.36%

Growth

Metric UCTT VECO Semiconductor Equipment & Materials median
Revenue growth (TTM) 15.79% 6.58% 15.82%
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 0.78 0.25 0.09
Current ratio 2.79 3.87 3.56
Net debt to EBITDA 1.35 (2.95) (0.49)

Dividend

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

Size

Metric UCTT VECO Semiconductor Equipment & Materials median
Market cap 1.78b 2.03b 3.04b

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