Contrasting Rubicon Technology (RBCN) & Ultra Clean (NASDAQ:UCTT)

Ultra Clean (NASDAQ:UCTT) and Rubicon Technology (NASDAQ:RBCN) 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 dividends, institutional ownership, earnings, profitability, analyst recommendations, risk and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
Ultra Clean 7.68% 24.73% 14.86%
Rubicon Technology -154.73% -23.26% -22.27%

Insider and Institutional Ownership

82.8% of Ultra Clean shares are held by institutional investors. Comparatively, 36.5% of Rubicon Technology shares are held by institutional investors. 1.9% of Ultra Clean shares are held by company insiders. Comparatively, 12.9% of Rubicon Technology shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ultra Clean $924.35 million 0.51 $75.08 million $2.34 5.17
Rubicon Technology $5.04 million 4.89 -$17.85 million N/A N/A

Ultra Clean has higher revenue and earnings than Rubicon Technology.

Risk & Volatility

Ultra Clean has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, Rubicon Technology has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Ultra Clean and Rubicon Technology, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ultra Clean 0 0 5 0 3.00
Rubicon Technology 0 0 0 0 N/A

Ultra Clean presently has a consensus price target of $29.00, suggesting a potential upside of 139.67%. Given Ultra Clean’s higher possible upside, analysts clearly believe Ultra Clean is more favorable than Rubicon Technology.

Summary

Ultra Clean beats Rubicon Technology on 8 of the 11 factors compared between the two stocks.

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.

Rubicon Technology Company Profile

Rubicon Technology, Inc. provides monocrystalline sapphire for applications in optical and industrial systems. It offers optical and industrial sapphire products in various shapes and sizes, including round and rectangular windows and blanks, domes, tubes, and rods for a range of end markets comprising defense and aerospace, specialty lighting, instrumentation, sensors and detectors, semiconductor process equipment, electronic substrates, medical, and laser applications. The company's product lines include thin, double-side polished windows as thin as 300 microns for 6 inches optical windows, and large-area blanks and polished windows; round C-plane sapphire windows approximately 11 inches in diameter and A-plane windows approximately 18 inches in diameter with UV grade windows approximately 13.5 inches in diameter; and sapphire window blanks at 36 x 18 x 0.8 inches dimensions. It markets and sells its products through its direct sales force in Asia, Australia, North America, and Europe. The company's principal customers include defense sub-contractors, industrial manufacturers, fabricators, and resellers. Rubicon Technology, Inc. was incorporated in 2001 and is headquartered in Bensenville, Illinois.

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