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. is the larger, with a market value of $3.5B against $2.8B — 1.3× the size. Ultra Clean Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; Veeco Instruments Inc. trades at 131×. 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 130.85 54.39
P/S 1.60 4.44 6.08
P/B 4.89 3.36 4.89
Price to free cash flow n/m 35.61 60.92
EV/EBITDA 27.09 74.76 39.95
EV/Sales 1.76 4.18 6.36
Earnings yield (0.67%) 0.76% 1.14%
Free cash flow yield (3.23%) 2.81% 1.28%

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%) —
Revenue growth, 5-year CAGR 7.99% 7.90% 8.85%
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 — — 0.85%
Payout ratio 0.00 0.00 0.00

Size

Metric UCTT VECO Semiconductor Equipment & Materials median
Market cap 3.52b 2.81b 4.63b

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