Knowles (NYSE: KN) and Universal Electronics (NASDAQ:UEIC) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.
Risk & Volatility
Knowles has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, Universal Electronics has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500.
This is a breakdown of recent ratings and recommmendations for Knowles and Universal Electronics, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Knowles presently has a consensus price target of $18.10, indicating a potential upside of 49.34%. Universal Electronics has a consensus price target of $71.33, indicating a potential upside of 43.10%. Given Knowles’ stronger consensus rating and higher probable upside, equities analysts clearly believe Knowles is more favorable than Universal Electronics.
Insider & Institutional Ownership
96.0% of Universal Electronics shares are held by institutional investors. 3.7% of Knowles shares are held by insiders. Comparatively, 5.9% of Universal Electronics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Knowles and Universal Electronics’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Knowles||$744.20 million||1.46||$68.30 million||$0.70||17.31|
|Universal Electronics||$695.79 million||1.01||-$10.32 million||$2.81||17.74|
Knowles has higher revenue and earnings than Universal Electronics. Knowles is trading at a lower price-to-earnings ratio than Universal Electronics, indicating that it is currently the more affordable of the two stocks.
This table compares Knowles and Universal Electronics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Knowles Corporation designs, manufactures, and sells micro-acoustic, audio processing, and precision device solutions to the mobile consumer electronics, industrial, defense, aerospace medical, and telecommunications markets worldwide. The company operates in two segments, Audio and Precision Devices. The Audio segment designs and manufactures audio products, including microphones and balanced armature speakers, signal processing technologies, and software and algorithms used in applications that serve the mobile, ear, and Internet of Things markets. This segment also offers analog and digital micro-electro-mechanical systems, and electret condenser and smart microphones; and ultrasonic sensors and acoustic processors, as well as transducer products used primarily in hearing health and headset applications. The Precision Devices segment designs and delivers engineered capacitors and radio frequency devices for technically demanding applications, such as power supplies, radar, medical implants, and satellites for the industrial, defense, aerospace, medical, and telecommunications markets. The company also provides single layer electronic components to the radio frequency device, microwave, telecommunication, fiber optics, defense, and aerospace markets. It sells its products directly to original equipment manufacturers and to their contract manufacturers and suppliers, as well as through distributors. Knowles Corporation was founded in 1946 and is headquartered in Itasca, Illinois.
About Universal Electronics
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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