Universal Electronics (NASDAQ:UEIC) and LRAD (NASDAQ:LRAD) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Analyst Recommendations

This is a summary of current ratings and price targets for Universal Electronics and LRAD, as provided by MarketBeat.

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

Universal Electronics presently has a consensus target price of $43.00, indicating a potential upside of 45.71%. LRAD has a consensus target price of $3.50, indicating a potential upside of 42.86%. Given Universal Electronics’ higher probable upside, analysts plainly believe Universal Electronics is more favorable than LRAD.

Earnings & Valuation

This table compares Universal Electronics and LRAD’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Universal Electronics $695.79 million 0.59 -$10.32 million $2.81 10.50
LRAD $26.31 million 3.09 -$3.74 million N/A N/A

LRAD has lower revenue, but higher earnings than Universal Electronics.

Insider and Institutional Ownership

48.6% of LRAD shares are owned by institutional investors. 6.0% of Universal Electronics shares are owned by company insiders. Comparatively, 2.9% of LRAD shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Universal Electronics 0.89% 11.88% 5.37%
LRAD -14.49% -5.11% -4.33%

Risk & Volatility

Universal Electronics has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500. Comparatively, LRAD has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.

Summary

Universal Electronics beats LRAD on 8 of the 12 factors compared between the two stocks.

About Universal Electronics

Universal Electronics Inc. develops and manufactures pre-programmed and universal control products, audio-video (AV) accessories, software and intelligent wireless security products, and sensing and automation components for home entertainment and automation systems. The company offers universal infrared and radio frequency (RF) remote controls; integrated circuits on which its software and universal device control database is embedded; and software, firmware, and technology solutions that enable devices, including televisions, set-top boxes, audio systems, smartphones, tablets, game controllers, and other consumer electronic devices to wirelessly connect and interact with home networks, as well as interactive services to control and deliver digital entertainment and information. It also provides proprietary and standards-based RF sensors designed for residential security, safety, and automation applications; AV accessories; and wall-mount and handheld thermostat controllers, and connected accessories for intelligent energy management systems. In addition, the company licenses intellectual property comprising its patented technologies, trademarks, and database of home connectivity software and control codes. It serves cable and satellite television service providers, and original equipment manufacturers; software development companies; subscription broadcasting providers; hospitality system integrators; and retail, private label, pro-security installation, and personal computing companies. The company sells its products directly, as well as through distributors in the United States, Europe, Australia, New Zealand, South Africa, the Middle East, Mexico, Latin America, the People's Republic of China, various countries in Asia, and internationally under the One For All and Nevo brands. Universal Electronics Inc. was founded in 1986 and is headquartered in Santa Ana, California.

About LRAD

LRAD Corporation designs, develops, and commercializes directed sound technologies and products in North and South America, Europe, the Middle East, Africa, and Asia. It develops directed acoustic communication systems that focus sound over short and long distances. The company offers directional and omnidirectional acoustic systems and accessories. It offers Long Range Acoustic Device primarily for government, military, law enforcement, homeland and international security, private and commercial security, border security, maritime security, and wildlife preservation and control markets. The company was formerly known as American Technology Corporation and changed its name to LRAD Corporation in March 2010. LRAD Corporation was founded in 1980 and is headquartered in San Diego, California.

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