Synaptics (NASDAQ:SYNA) and Ultra Clean (NASDAQ:UCTT) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, analyst recommendations, earnings, dividends and profitability.
This table compares Synaptics and Ultra Clean’s net margins, return on equity and return on assets.
This is a summary of current recommendations and price targets for Synaptics and Ultra Clean, as reported by MarketBeat.com.
Synaptics presently has a consensus target price of $52.40, suggesting a potential upside of 25.42%. Ultra Clean has a consensus target price of $20.25, suggesting a potential upside of 62.52%. Given Ultra Clean’s stronger consensus rating and higher probable upside, analysts plainly believe Ultra Clean is more favorable than Synaptics.
Valuation and Earnings
This table compares Synaptics and Ultra Clean’s gross revenue, earnings per share (EPS) and valuation.
Ultra Clean has lower revenue, but higher earnings than Synaptics. Ultra Clean is trading at a lower price-to-earnings ratio than Synaptics, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
98.8% of Synaptics shares are owned by institutional investors. Comparatively, 86.3% of Ultra Clean shares are owned by institutional investors. 2.7% of Synaptics shares are owned by company insiders. Comparatively, 1.9% of Ultra Clean shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Volatility & Risk
Synaptics has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Ultra Clean has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500.
Ultra Clean beats Synaptics on 8 of the 13 factors compared between the two stocks.
Synaptics Company Profile
Synaptics Incorporated develops, markets, and sells intuitive human interface solutions for electronic devices and products worldwide. The company offers its products and solutions for smartphones, tablets, and touchscreen applications, as well as mobile, handheld, wireless, and entertainment devices; notebook applications; and other personal computer (PC) product applications. Its products include ClearPad, which enables users to interact directly with the display on mobile smartphones, tablets, and automobiles; ClearView products that provide advanced image processing and low power technology for entry-level smartphones; TouchView products, which integrate touch and display technologies to deliver performance and simplified design; and Natural ID, a fingerprint ID product that is used in smartphones, tablets, notebook PCs, PC peripherals, and other applications. The company also provides TouchPad, a touch-sensitive pad that senses the position and movement of one or more fingers on its surface; SecurePad that integrates fingerprint sensor directly into the TouchPad area; ClickPad that offers a clickable mechanical design to the TouchPad solution; ForcePad, a thinner version of its ClickPad; AudioSmart personal voice and audio solutions; VideoSmart single-chip 4K UHD media processors for TVs, set-top boxes, and over-the-top streaming devices; and ImagingSmart solutions. In addition, it offers TouchPad with a pointing stick in a single notebook computer enabling users to select their interface of choice; TouchStyk, a self-contained pointing stick module; and TouchButtons, which provides capacitive buttons and scrolling controls, as well as display interface products. The company sells its products through direct sales, outside sales representatives, distributors, and resellers. It serves smartphone, tablet, and PC original equipment manufacturers; and consumer electronics manufacturers. The company was founded in 1986 and is headquartered in San Jose, California.
Ultra Clean Company Profile
Ultra Clean Holdings, Inc. designs, develops, prototypes, engineers, manufactures, and tests production tools, modules, and subsystems for the semiconductor and display capital equipment industries primarily in North America, Asia, and Europe. It offers precision robotic systems that are used when accurate controlled motion is required; gas delivery systems, which include one or more gas lines consisting of small diameter internally polished stainless steel tubing products, filters, mass flow controllers, regulators, pressure transducers and valves, component heaters, and an integrated electronic and/or pneumatic control system; and various industrial and automation production equipment products. The company also provides subsystems, such as wafer cleaning modules; chemical delivery modules that deliver gases and reactive chemicals in a liquid or gaseous form from a centralized subsystem to the reaction chamber; frame assemblies, which are support structures fabricated from steel tubing or folded sheet metal; and top-plate assemblies. In addition, it offers fluid delivery systems consists of one or more chemical delivery units; process modules, which are the subsystems of semiconductor manufacturing tools that process integrated circuits onto wafers; and other high level assemblies. The company primarily serves original equipment manufacturing customers in the semiconductor capital equipment, consumer, medical, energy, industrial, and research industries. Ultra Clean Holding, Inc. was founded in 1991 and is headquartered in Hayward, California.