Quick verdict: AOSL vs UCTT in 2026

Alpha and Omega Semiconductor Limited (AOSL) currently holds a slight overall edge in our head-to-head comparison, winning 6 of 11 comparable metrics. AOSL stands out as the growth leader with positive revenue expansion, while Ultra Clean Holdings, Inc. (UCTT) shows a less severe net margin and is favored more by analysts. UCTT also presents a marginally higher target price upside according to current consensus. Not investment advice.

AOSL vs UCTT: key metrics side by side

Full side-by-side comparison of AOSL and UCTT across valuation, profitability, growth and analyst sentiment. Data updated 2026-05-11.

AOSL vs UCTT valuation comparison

When considering AOSL vs UCTT valuation, both companies present negative P/E ratios, indicating they are currently unprofitable over the trailing twelve months. AOSL has a P/E of -10.66x, which, while negative, suggests its losses are smaller relative to its share price compared to UCTT’s P/E of -20.33x. This metric implies UCTT is “more expensive” relative to its negative earnings. However, a deeper look into their balance sheets via the P/B ratio reveals a different picture. AOSL trades at a P/B of 1.42x, significantly lower than UCTT’s 6.28x. This suggests AOSL’s market capitalization is closer to its book value of assets, potentially making it a more attractive option for value investors looking at asset-backed valuation.

Both companies exhibit deeply concerning Discounted Cash Flow (DCF) valuations. AOSL’s current price is an alarming -81.7% above its DCF calculated value of $6.92, while UCTT is even more severely overvalued, trading at -98.4% above its DCF of $1.37. These figures indicate that based on their current and projected free cash flows, both stocks are significantly overpriced. From a valuation perspective, neither stock appears cheap based on these DCF models, but AOSL’s lower P/B ratio and less negative P/E ratio make it appear comparatively less overvalued when analyzing core financial metrics beyond cash flow projections. Investors interested in AOSL vs UCTT fundamentals and valuation should approach these metrics with caution, understanding the underlying reasons for negative profitability and poor DCF outcomes.

AOSL vs UCTT growth comparison

In terms of growth, Alpha and Omega Semiconductor Limited (AOSL) demonstrates stronger momentum compared to Ultra Clean Holdings, Inc. (UCTT). AOSL recorded a positive revenue growth of +5.9% year-over-year, indicating an expanding top-line performance. This suggests that AOSL is successfully increasing its sales despite market conditions, which is a key indicator for growth-oriented investors looking at AOSL vs UCTT stock comparison 2026. This growth is also supported by a positive EBITDA margin of 2.81%, reflecting efficiency in core operations before depreciation and amortization.

Conversely, Ultra Clean Holdings, Inc. (UCTT) experienced a -2.1% year-over-year revenue decline, signaling a contraction in its sales. This negative growth, coupled with a negative EBITDA margin of -1.68%, suggests challenges in maintaining operational profitability and expanding its market presence. While both companies operate in the technology sector, AOSL’s ability to achieve positive revenue growth and a positive EBITDA margin indicates better performance and stronger forward estimates for operational improvement compared to UCTT’s current trajectory. This makes AOSL appear to have stronger momentum from a growth perspective.

AOSL vs UCTT profitability

Examining the profitability of AOSL vs UCTT, both companies currently face challenges, as evidenced by their negative net margins. Ultra Clean Holdings, Inc. (UCTT) shows a less severe net margin of -9.38% compared to Alpha and Omega Semiconductor Limited (AOSL) at -15.51%. This indicates that UCTT is more efficient at converting its revenue into net income, or rather, it is losing less money per dollar of revenue. On the gross margin front, AOSL takes the lead with 22.41% compared to UCTT’s 15.63%, suggesting AOSL has a better handle on its cost of goods sold. However, operational expenses seem to weigh more heavily on AOSL’s bottom line.

Neither company reports a measurable Return on Equity (ROE) as it is stated as N/A%, which typically occurs when a company has negative shareholder equity, making a direct comparison difficult. For Free Cash Flow (FCF) yield, UCTT again demonstrates a slightly better, though still negative, performance at -1.13% compared to AOSL’s -5.35%. This suggests UCTT is burning less cash relative to its market capitalization. In summary, while both are unprofitable, UCTT currently generates more cash from its operations relative to its size and manages to incur less net loss per dollar of revenue, giving it a slight edge in overall profitability despite AOSL’s superior gross margin.

Analyst ratings: AOSL vs UCTT

The analyst community shows a “Buy” consensus for both Alpha and Omega Semiconductor Limited (AOSL) and Ultra Clean Holdings, Inc. (UCTT), but with differing levels of conviction. AOSL, with 11 analysts covering it, has 45.5% recommending a “Buy” rating. Their collective price target is $43, representing a potential upside of +13.5% from its current price of $37.9. The FMP (Financial Modeling Prep) rating for AOSL is B-, suggesting a reasonably strong fundamental outlook from their quantitative assessment.

On the other hand, Ultra Clean Holdings, Inc. (UCTT) is covered by a slightly larger pool of 12 analysts, with a higher percentage — 66.7% — giving it a “Buy” rating. The consensus price target for UCTT is $100, which offers a potential upside of +14.8% from its current price of $87.1. This slightly higher analyst confidence and target upside indicate that analysts, on average, prefer UCTT marginally more. However, UCTT’s FMP rating is D+, which points to a weaker quantitative fundamental assessment compared to AOSL. This contrast suggests that while human analysts see more potential in UCTT, automated fundamental analysis flags more risks. Investors considering should i buy aosl or uctt stock 2026 should weigh both qualitative analyst sentiment and quantitative fundamental scores.

Should I buy AOSL or UCTT stock in 2026?

Deciding whether to buy AOSL or UCTT stock in 2026 depends heavily on an investor’s risk tolerance and investment objectives, particularly given both companies’ current unprofitability. For growth investors, Alpha and Omega Semiconductor Limited (AOSL) appears to be the more compelling option, exhibiting positive year-over-year revenue growth of 5.9%. This indicates some expansion and market capture, whereas Ultra Clean Holdings, Inc. (UCTT) is currently seeing a revenue decline of -2.1%. AOSL also boasts a higher gross margin and positive EBITDA margin, which suggests better operational health at a fundamental level.

From a value investment perspective, the AOSL vs UCTT fundamentals and valuation present a complex picture. Both stocks have deeply negative DCF valuations, suggesting significant overvaluation based on future cash flow projections. However, AOSL’s P/B ratio of 1.42x is considerably lower than UCTT’s 6.28x, implying that AOSL’s stock price is much closer to its underlying book value, making it relatively “cheaper” on an asset basis. UCTT’s P/E of -20.33x is more negative than AOSL’s -10.66x, indicating a larger loss relative to its market price. Therefore, for investors prioritizing a lower P/B and less severe negative earnings multiple, AOSL might be seen as the better value play, despite the high DCF discrepancy for both.

For income-focused investors, neither AOSL nor UCTT is suitable, as both companies currently have a 0% dividend yield. Both are in a phase of operations where profitability is negative, and thus, returning capital to shareholders via dividends is not a priority. Investors looking for passive income should explore other opportunities. Overall, while both present challenges, AOSL exhibits stronger growth momentum and a more favorable P/B valuation, while UCTT has slightly better net profitability and stronger analyst sentiment regarding price targets. This is not investment advice; thorough due diligence is always recommended.

More AOSL and UCTT comparisons

AOSL full stock analysis · UCTT full stock analysis · All stock comparisons

FAQ: AOSL vs UCTT