Ultra Clean (NASDAQ:UCTT) vs. ARM (NASDAQ:ARM) Head-To-Head Comparison

Ultra Clean (NASDAQ:UCTT) and ARM (NASDAQ:ARM) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, valuation, analyst recommendations, profitability and earnings.

Profitability

This table compares Ultra Clean and ARM’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ultra Clean	-2.09%	2.19%	1.05%
ARM	9.46%	16.94%	11.45%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Ultra Clean and ARM, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ultra Clean	0	0	3	0	3.00
ARM	1	12	14	0	2.48

Ultra Clean currently has a consensus target price of $57.00, suggesting a potential upside of 10.40%. Given Ultra Clean’s stronger consensus rating and higher possible upside, equities analysts plainly believe Ultra Clean is more favorable than ARM.

Insider & Institutional Ownership

96.1% of Ultra Clean shares are held by institutional investors. Comparatively, 7.5% of ARM shares are held by institutional investors. 2.2% of Ultra Clean shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Ultra Clean and ARM’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ultra Clean	$1.73 billion	1.33	-$31.10 million	($0.82)	-62.96
ARM	$3.23 billion	54.53	$306.00 million	N/A	N/A

ARM has higher revenue and earnings than Ultra Clean.

Summary

ARM beats Ultra Clean on 7 of the 11 factors compared between the two stocks.

About Ultra Clean

Ultra Clean Holdings, Inc. develops and supplies critical subsystems, components and parts, and ultra-high purity cleaning and analytical services for the semiconductor industry in the United States and internationally. The company provides ultra-clean valves, high purity connectors, industrial process connectors and valves, pneumatic actuators, manifolds and safety solutions, hoses, pressure gauges, and gas line and component heaters; chemical delivery modules that deliver gases and reactive chemicals in a liquid or gaseous form from a centralized subsystem to the reaction chamber; and gas delivery systems, such as weldments, filters, mass flow controllers, regulators, pressure transducers and valves, component heaters, and an integrated electronic and/or pneumatic control system. It also offers various industrial and automation production equipment; fluid delivery systems consist of one or more chemical delivery units, including PFA tubing, filters, flow controllers, regulators, component heaters, and an integrated electronic and/or pneumatic control system; precision robotic systems; top-plate assemblies; frame assemblies; process modules, a subsystem of semiconductor manufacturing tools that process integrated circuits onto wafers; and other high-level assemblies. In addition, the company provides tool chamber parts cleaning and coating services; micro-contamination analysis services for tool parts, wafers and depositions, chemicals, cleanroom materials, deionized water, and airborne molecular contamination; and analytical verification services for process tool chamber part cleaning. It primarily serves original equipment manufacturing customers in the semiconductor capital equipment and semiconductor integrated device manufacturing industries, as well as display, consumer, medical, energy, industrial, and research equipment industries. The company was founded in 1991 and is headquartered in Hayward, California.

About ARM

Arm Holdings plc architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers rely on to develop products. It offers microprocessors, systems intellectual property (IPs), graphics processing units, physical IP and associated systems IPs, software, tools, and other related services. Its products are used in various markets, such as automotive, computing infrastructure, consumer technologies, and Internet of things. The company operates in the United States, the People's Republic of China, Taiwan, South Korea, and internationally. The company was founded in 1990 and is headquartered in Cambridge, the United Kingdom. Arm Holdings plc operates as a subsidiary of Kronos II LLC.