UL Solutions (NYSE:ULS) versus UMC (OTCMKTS:UMCN) Financial Analysis

UMC (OTCMKTS:UMCN) and UL Solutions (NYSE:ULS) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Profitability

This table compares UMC and UL Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UMC	-1,022.22%	N/A	N/A
UL Solutions	11.29%	34.49%	12.74%

Earnings & Valuation

This table compares UMC and UL Solutions”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UMC	N/A	N/A	-$180,000.00	N/A	N/A
UL Solutions	$3.00 billion	4.63	$326.00 million	$1.67	41.48

UL Solutions has higher revenue and earnings than UMC.

Analyst Recommendations

This is a breakdown of recent recommendations for UMC and UL Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UMC	0	0	0	0	0.00
UL Solutions	0	5	3	1	2.56

UL Solutions has a consensus price target of $83.57, suggesting a potential upside of 20.63%. Given UL Solutions’ stronger consensus rating and higher possible upside, analysts plainly believe UL Solutions is more favorable than UMC.

Risk and Volatility

UMC has a beta of 33.48, suggesting that its stock price is 3,248% more volatile than the S&P 500. Comparatively, UL Solutions has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Summary

UL Solutions beats UMC on 9 of the 10 factors compared between the two stocks.

About UMC

UMC, Inc. provides medical insurance claims coding and processing, electronic medical records storage, chargemaster review, pricing comparison, and accounts receivable management services to healthcare providers. Its customers primarily include hospitals, medical clinics, and physician practitioners in the United States. The company was formerly known as United Medicorp, Inc. and changed its name to UMC, Inc. in May 2007. UMC, Inc. was incorporated in 1989 and is based in Pampa, Texas.

About UL Solutions

UL Solutions Inc. provides safety science services worldwide. It operates through three segments: Industrial, Consumer, and Software and Advisory. The Industrial segment provides testing, inspection, and certification services across various end markets, including energy, industrial automation, engineered materials, and built environment, as well as stakeholders, such as manufacturers, building owners, end users, and regulators. The Consumer segment offers safety certification testing, ongoing certification, global market access, testing for connectivity, performance and quality, and critical systems advisory and training services, as well as product market acceptance and risk mitigation services for customers in the consumer products end markets comprising consumer electronics, medical devices, information technologies, appliances, HVAC, lighting, and retail, as well as consumer applications, such as new mobility, smart products, and 5G. The Software and Advisory segment provide software and technical advisory services that enable customers to manage regulatory requirements, deliver supply chain transparency, and operationalize sustainability for regulated industries, including life sciences, supply chain regulations, transparency needs, and new ESG and sustainability requirements. It offers ULTRUS software brand to help customers improve speed to market, sustainability and safety. UL Solutions Inc. was formerly known as UL Inc. and changed its name to UL Solutions Inc. in June 2022. The company was founded in 1894 and is headquartered in Northbrook, Illinois with additional offices in North America, Asia Pacific, Africa, Europe, Latin America, and Middle East. UL Solutions Inc. operates as a subsidiary of ULSE Inc.