Ubiquiti Networks (NASDAQ:UBNT) and SGOCO Group (NASDAQ:SGOC) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, dividends, analyst recommendations, earnings and institutional ownership.

Dividends

Ubiquiti Networks pays an annual dividend of $1.00 per share and has a dividend yield of 0.8%. SGOCO Group does not pay a dividend. Ubiquiti Networks pays out 27.3% of its earnings in the form of a dividend.

Profitability

This table compares Ubiquiti Networks and SGOCO Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ubiquiti Networks 28.11% 152.60% 35.27%
SGOCO Group N/A N/A N/A

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Ubiquiti Networks and SGOCO Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ubiquiti Networks 1 4 0 0 1.80
SGOCO Group 0 0 0 0 N/A

Ubiquiti Networks presently has a consensus price target of $90.00, suggesting a potential downside of 29.84%. Given Ubiquiti Networks’ higher possible upside, equities research analysts plainly believe Ubiquiti Networks is more favorable than SGOCO Group.

Risk & Volatility

Ubiquiti Networks has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500. Comparatively, SGOCO Group has a beta of 0.17, meaning that its stock price is 83% less volatile than the S&P 500.

Insider & Institutional Ownership

20.9% of Ubiquiti Networks shares are owned by institutional investors. Comparatively, 0.0% of SGOCO Group shares are owned by institutional investors. 78.7% of Ubiquiti Networks shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Ubiquiti Networks and SGOCO Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ubiquiti Networks $1.02 billion 8.90 $196.29 million $3.66 35.05
SGOCO Group $1.58 million 58.25 -$12.37 million N/A N/A

Ubiquiti Networks has higher revenue and earnings than SGOCO Group.

Summary

Ubiquiti Networks beats SGOCO Group on 10 of the 12 factors compared between the two stocks.

About Ubiquiti Networks

Ubiquiti Networks, Inc. develops networking technology for service providers, enterprises, and consumers. It focuses on three principal technologies, including high-capacity distributed Internet access, unified information technology, and consumer electronics for home and personal use. The company's service provider product platforms offer carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems, and routing; and enterprise product platforms provide wireless LAN infrastructure, video surveillance products, switching and routing solutions, security gateways, and other WLAN products, as well as offers consumer products under the Ubiquiti Labs brand name. Its proprietary products and solutions include radios, antennas, software, communications protocols, and management tools to deliver wireless broadband access and other services. The company also provides technology platforms, such as airMAX platform, which include proprietary protocols that contain technologies for minimizing signal noise; EdgeMAX, a disruptive price-performance software and system routing platform; airFiber, a point-to-point radio system; and UFiber GPON platform to build high speed fiber Internet networks. In addition, it offers UniFi Enterprise WLAN; UniFi Video, a video surveillance system; UniFi Switch that deliver performance, switching, and PoE+ support for enterprise networks; and UniFi Security Gateway that provide routing and network security, as well as develops AmpliFi platform, a Wi-Fi system solution for connected homes. Further, Ubiquiti Networks, Inc. offers embedded radio products; and mounting brackets, cables, and power over Ethernet adapters. It serves customers through a network of approximately 100 distributors and online retailers worldwide. The company was formerly known as Pera Networks, Inc. and changed its name to Ubiquiti Networks, Inc. in 2005. Ubiquiti Networks, Inc. was incorporated in 2003 and is headquartered in New York, New York.

About SGOCO Group

SGOCO Group, Ltd. engages in the product design, distribution, and brand development in the display and computer product market in Mainland China and Hongkong. The company also provides energy saving products and services. Its products include LCD/LED monitors; all-in-one and part-in-one computers; virtual reality technology and devices; and phase change material thermal energy storage products. In addition, it involves in money lending activities. The company also develops tablet PCs, 3D LCD/LED TVs, LED-backlit monitors, and multi-screen display systems for advertising, public announcement, and other institutional uses. It sells its products under the SGOCO, Shangwei, and POVIZON brand names to electronics distributors and trading companies. The company was formerly known as SGOCO Technology, Ltd. SGOCO Group, Ltd. was founded in 2005 and is headquartered in Tsuen Wan, Hong Kong.

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