Knowles (NYSE: KN) and Universal Electronics (NASDAQ:UEIC) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.
Earnings & Valuation
This table compares Knowles and Universal Electronics’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Knowles||$744.20 million||1.44||$68.30 million||$0.70||17.14|
|Universal Electronics||$695.79 million||1.02||-$10.32 million||$2.81||17.92|
Institutional and Insider Ownership
96.0% of Universal Electronics shares are held by institutional investors. 3.7% of Knowles shares are held by company insiders. Comparatively, 5.9% of Universal Electronics shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a breakdown of current ratings for Knowles and Universal Electronics, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Knowles currently has a consensus price target of $18.10, suggesting a potential upside of 50.83%. Universal Electronics has a consensus price target of $71.33, suggesting a potential upside of 41.67%. Given Knowles’ stronger consensus rating and higher probable upside, analysts plainly believe Knowles is more favorable than Universal Electronics.
This table compares Knowles and Universal Electronics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Knowles has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Universal Electronics has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.
Knowles Corporation is a global supplier of micro-acoustic, audio processing and specialty component solutions, serving the mobile consumer electronics, communications, medical, military, aerospace and industrial markets. The Company operates through two segments: Mobile Consumer Electronics (MCE) and Specialty Components (SC). MCE designs and manufactures acoustic products, including microphones and audio processing technologies used in mobile handsets, wearables and other consumer electronic devices. SC specializes in the design and manufacture of specialized electronic components used in medical and life science applications, as well as solutions and components used in communications infrastructure and a range of other markets. It has sales, support and engineering facilities in North America, Europe and Asia, and manufacturing facilities in Asia. It also offers acoustics components used in hearing aids, as well as high-end oscillators (timing devices) and capacitors.
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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