GlobalFoundries (NASDAQ:GFS – Get Free Report) and Ultra Clean (NASDAQ:UCTT – Get Free Report) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, analyst recommendations and institutional ownership.
Profitability
This table compares GlobalFoundries and Ultra Clean’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GlobalFoundries | 10.36% | 6.69% | 4.69% |
| Ultra Clean | -1.07% | 6.99% | 2.89% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for GlobalFoundries and Ultra Clean, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GlobalFoundries | 2 | 9 | 9 | 0 | 2.35 |
| Ultra Clean | 1 | 0 | 5 | 1 | 2.86 |
Risk & Volatility
GlobalFoundries has a beta of 1.78, meaning that its share price is 78% more volatile than the S&P 500. Comparatively, Ultra Clean has a beta of 1.88, meaning that its share price is 88% more volatile than the S&P 500.
Earnings & Valuation
This table compares GlobalFoundries and Ultra Clean”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GlobalFoundries | $6.79 billion | 3.79 | $885.00 million | $1.28 | 36.68 |
| Ultra Clean | $2.20 billion | 1.51 | -$181.20 million | ($0.52) | -142.38 |
GlobalFoundries has higher revenue and earnings than Ultra Clean. Ultra Clean is trading at a lower price-to-earnings ratio than GlobalFoundries, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
96.1% of Ultra Clean shares are held by institutional investors. 1.8% of Ultra Clean shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
GlobalFoundries beats Ultra Clean on 8 of the 15 factors compared between the two stocks.
About GlobalFoundries
GlobalFoundries Inc., a semiconductor foundry, provides range of mainstream wafer fabrication services and technologies worldwide. It manufactures various semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units. GlobalFoundries Inc. has a strategic partnership with Efficient Computer to develop high-performance computer processors. The company was incorporated in 2008 and is headquartered in Malta, New York.
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.
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