Contrasting Ultra Clean (NASDAQ:UCTT) and Enphase Energy (NASDAQ:ENPH)

Enphase Energy (NASDAQ:ENPHGet Free Report) and Ultra Clean (NASDAQ:UCTTGet Free Report) are both oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, profitability, dividends, analyst recommendations, risk, valuation and institutional ownership.

Insider & Institutional Ownership

72.1% of Enphase Energy shares are held by institutional investors. Comparatively, 96.1% of Ultra Clean shares are held by institutional investors. 3.4% of Enphase Energy shares are held by insiders. Comparatively, 2.2% of Ultra Clean shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Enphase Energy and Ultra Clean, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enphase Energy 3 16 13 0 2.31
Ultra Clean 0 0 4 0 3.00

Enphase Energy currently has a consensus target price of $93.06, indicating a potential upside of 49.42%. Ultra Clean has a consensus target price of $57.75, indicating a potential upside of 56.63%. Given Ultra Clean’s stronger consensus rating and higher possible upside, analysts clearly believe Ultra Clean is more favorable than Enphase Energy.

Profitability

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

Net Margins Return on Equity Return on Assets
Enphase Energy 4.91% 10.56% 3.01%
Ultra Clean 0.18% 4.08% 1.94%

Valuation and Earnings

This table compares Enphase Energy and Ultra Clean”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Enphase Energy $1.25 billion 6.73 $438.94 million $0.44 141.55
Ultra Clean $1.73 billion 0.96 -$31.10 million $0.08 460.93

Enphase Energy has higher earnings, but lower revenue than Ultra Clean. Enphase Energy is trading at a lower price-to-earnings ratio than Ultra Clean, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Enphase Energy has a beta of 1.68, suggesting that its stock price is 68% more volatile than the S&P 500. Comparatively, Ultra Clean has a beta of 2.1, suggesting that its stock price is 110% more volatile than the S&P 500.

Summary

Enphase Energy beats Ultra Clean on 8 of the 14 factors compared between the two stocks.

About Enphase Energy

(Get Free Report)

Enphase Energy, Inc., together with its subsidiaries, designs, develops, manufactures, and sells home energy solutions for the solar photovoltaic industry in the United States and internationally. The company offers semiconductor-based microinverter, which converts energy at the individual solar module level and combines with its proprietary networking and software technologies to provide energy monitoring and control. It also provides microinverter units and related accessories, an IQ gateway; IQ batteries; the cloud-based Enlighten monitoring service; storage solutions; and electric vehicle charging solutions, as well as design, proposal, permitting, and lead generation services. The company sells its solutions to solar distributors; and directly to large installers, original equipment manufacturers, strategic partners, and homeowners, as well as through its legacy product upgrade program or online store. Enphase Energy, Inc. was incorporated in 2006 and is headquartered in Fremont, California.

About Ultra Clean

(Get Free Report)

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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