Financial Comparison: Panasonic (PCRFY) & Universal Electronics (UEIC)

Panasonic (OTCMKTS: PCRFY) and Universal Electronics (NASDAQ:UEIC) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.

Profitability

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This table compares Panasonic and Universal Electronics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Panasonic 2.22% 9.48% 2.80%
Universal Electronics -1.48% 11.65% 5.52%

Analyst Recommendations

This is a summary of current ratings and target prices for Panasonic and Universal Electronics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Panasonic 0 0 1 0 3.00
Universal Electronics 0 1 2 0 2.67

Universal Electronics has a consensus target price of $71.33, suggesting a potential upside of 43.82%. Given Universal Electronics’ higher possible upside, analysts clearly believe Universal Electronics is more favorable than Panasonic.

Valuation & Earnings

This table compares Panasonic and Universal Electronics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Panasonic $67.93 billion 0.50 $1.39 billion $0.60 24.24
Universal Electronics $695.79 million 1.01 -$10.32 million $2.81 17.65

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

Insider and Institutional Ownership

0.2% of Panasonic shares are owned by institutional investors. Comparatively, 96.0% of Universal Electronics shares are owned by institutional investors. 1.0% of Panasonic shares are owned by company insiders. Comparatively, 5.9% of Universal Electronics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Panasonic has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, Universal Electronics has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500.

Dividends

Panasonic pays an annual dividend of $0.07 per share and has a dividend yield of 0.5%. Universal Electronics does not pay a dividend. Panasonic pays out 11.7% of its earnings in the form of a dividend.

Summary

Universal Electronics beats Panasonic on 9 of the 16 factors compared between the two stocks.

Panasonic Company Profile

Panasonic Corporation is engaged in the development of diverse electronics technologies and solutions. The Company operates through five segments: Appliances, Eco Solutions, AVC Networks, Automotive & Industrial Systems, and Other. The Appliances segment is engaged in the development, manufacture and sale of consumer electronics, air-conditioners, cold chain and devices. The Eco Solutions segment is engaged in development, manufacture and sale of lighting fixtures, lamps, wiring devices, solar photovoltaic systems, ventilation and air-conditioning equipment, air purifiers and nursing-care-related products. The AVC Networks segment is engaged in development, manufacture and sale of products, such as aircraft in-flight entertainment systems, personal computers, and social infrastructure systems equipment. The Automotive & Industrial Systems segment is engaged in the development, manufacture and sale of automotive products, energy products, industrial devices and factory solutions.

Universal Electronics Company Profile

Universal Electronics Inc. (UEI) develops control and sensor technology solutions and manufactures a line of pre-programmed and universal remote control products, audio-video (AV) accessories, and intelligent wireless security and automation components. The Company’s offerings include pre-programmed universal infrared (IR) and radio frequency (RF) remote controls that are sold primarily to subscription broadcasting providers, original equipment manufacturers (OEMs), retailers, and private label customers, and integrated circuits, on which its software and universal device control database is embedded, sold primarily to OEMs, subscription broadcasting providers, and private label customers. Its offerings also include software, firmware and technology solutions that enable devices, such as televisions, set-top boxes, stereos, smart phones tablets, gaming controllers and other consumer electronic devices, to wirelessly connect and interact with home networks and interactive services.

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