Analyzing Ultratech (UTEK) and Fortive (FTV)

Ultratech (NASDAQ: UTEK) and Fortive (NYSE:FTV) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.

Risk & Volatility

Ultratech has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500. Comparatively, Fortive has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500.

Earnings & Valuation

This table compares Ultratech and Fortive’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ultratech N/A N/A N/A $0.57 53.04
Fortive $6.22 billion 4.08 $872.30 million $2.65 27.54

Fortive has higher revenue and earnings than Ultratech. Fortive is trading at a lower price-to-earnings ratio than Ultratech, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

92.7% of Ultratech shares are owned by institutional investors. Comparatively, 78.8% of Fortive shares are owned by institutional investors. 5.9% of Ultratech shares are owned by insiders. Comparatively, 12.1% of Fortive shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Fortive pays an annual dividend of $0.28 per share and has a dividend yield of 0.4%. Ultratech does not pay a dividend. Fortive pays out 10.6% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Ultratech and Fortive, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ultratech 0 3 0 0 2.00
Fortive 0 7 6 0 2.46

Ultratech presently has a consensus price target of $28.88, indicating a potential downside of 4.47%. Fortive has a consensus price target of $69.50, indicating a potential downside of 4.78%. Given Ultratech’s higher probable upside, equities analysts plainly believe Ultratech is more favorable than Fortive.

Profitability

This table compares Ultratech and Fortive’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ultratech 5.17% 3.22% 2.83%
Fortive 14.39% 31.67% 11.32%

Summary

Fortive beats Ultratech on 9 of the 13 factors compared between the two stocks.

About Ultratech

Ultratech, Inc. (Ultratech) develops, manufactures and markets photolithography, laser thermal processing and inspection equipment. The Company operates through the manufacture and distribution of capital equipment to manufacturers of integrated circuits and nanotechnology components segment. The Company serves manufacturers of semiconductor devices, including packaging processes and various nanotechnology components such as laser diodes, high-brightness light emitting diodes (HBLEDs) and micro-electro-mechanical systems (MEMS), as well as atomic layer deposition systems (ALD) for customers located throughout the world. It has operations in North America, Europe, Singapore, Japan, Taiwan, Korea and the rest of Asia. The Company supplies step-and-repeat photolithography systems based on one-to-one (1X) imaging technology to customers located throughout North America, Europe and Asia.

About Fortive

Fortive Corporation is a diversified industrial growth company. The Company designs, develops, manufactures and markets professional and engineered products, software and services for a range of end markets. The Company operates through two segments: Professional Instrumentation and Industrial Technologies. The Company’s brands operate in field instrumentation, transportation, sensing, product realization, automation and specialty, and franchise distribution markets. The Professional Instrumentation segment offers essential products, software and services used to create actionable intelligence by measuring and monitoring a range of physical parameters in industrial applications, including electrical current, radio frequency signals, distance, pressure and temperature. The Industrial Technologies segment offers critical technical equipment, components, software and services for manufacturing, repair and transportation markets around the world.

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