Skullcandy (NASDAQ: SKUL) and Universal Electronics (NASDAQ:UEIC) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, risk, profitabiliy, analyst recommendations and dividends.
Earnings & Valuation
This table compares Skullcandy and Universal Electronics’ top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Skullcandy | N/A | N/A | N/A | $0.07 | 90.58 |
| Universal Electronics | $662.12 million | 1.52 | $59.62 million | $1.21 | 57.52 |
Universal Electronics has higher revenue and earnings than Skullcandy. Universal Electronics is trading at a lower price-to-earnings ratio than Skullcandy, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations and price targets for Skullcandy and Universal Electronics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Skullcandy | 0 | 1 | 0 | 0 | 2.00 |
| Universal Electronics | 0 | 1 | 2 | 0 | 2.67 |
Skullcandy currently has a consensus target price of $6.35, suggesting a potential upside of 0.16%. Universal Electronics has a consensus target price of $75.08, suggesting a potential upside of 7.88%. Given Universal Electronics’ stronger consensus rating and higher probable upside, analysts clearly believe Universal Electronics is more favorable than Skullcandy.
Insider & Institutional Ownership
46.7% of Skullcandy shares are owned by institutional investors. Comparatively, 92.7% of Universal Electronics shares are owned by institutional investors. 7.7% of Skullcandy shares are owned by insiders. Comparatively, 5.8% of Universal Electronics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Skullcandy and Universal Electronics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Skullcandy | -2.75% | -4.04% | -3.32% |
| Universal Electronics | 2.68% | 14.40% | 7.73% |
Risk & Volatility
Skullcandy has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, Universal Electronics has a beta of 1.65, suggesting that its share price is 65% more volatile than the S&P 500.
Summary
Universal Electronics beats Skullcandy on 10 of the 11 factors compared between the two stocks.
About Skullcandy
Skullcandy, Inc. creates audio experiences through its Skullcandy and Astro Gaming brands. The Company operates in two segments: Domestic and International. The Domestic segment consists of Skullcandy and Astro Gaming product sales to customers in the United States. The International segment includes Skullcandy product sales to customers in Europe, Asia, Canada Mexico, and all other geographic areas outside the United States that are served by the Company’s International operations. The Company focuses its product offerings in two categories: audio and gaming. The Company primarily operates in the consumer products category in which the Company develops and distributes headphones and other audio products. Astro Gaming creates premium video gaming equipment for professional gamers, leagues, and gaming enthusiasts. Skullcandy brand creates various audio and gaming products.
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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