Universal Electronics (NASDAQ:UEIC – Get Free Report) and Preformed Line Products (NASDAQ:PLPC – Get Free Report) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.
Analyst Ratings
This is a summary of recent ratings for Universal Electronics and Preformed Line Products, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Universal Electronics | 1 | 2 | 0 | 0 | 1.67 |
| Preformed Line Products | 0 | 0 | 1 | 0 | 3.00 |
Universal Electronics presently has a consensus price target of $5.75, indicating a potential upside of 106.83%. Given Universal Electronics’ higher probable upside, research analysts clearly believe Universal Electronics is more favorable than Preformed Line Products.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Universal Electronics | $391.00 million | 0.10 | -$24.03 million | ($1.67) | -1.66 |
| Preformed Line Products | $663.35 million | 1.42 | $37.09 million | $7.55 | 25.43 |
Preformed Line Products has higher revenue and earnings than Universal Electronics. Universal Electronics is trading at a lower price-to-earnings ratio than Preformed Line Products, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Universal Electronics has a beta of 1.63, indicating that its stock price is 63% more volatile than the S&P 500. Comparatively, Preformed Line Products has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500.
Profitability
This table compares Universal Electronics and Preformed Line Products’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Universal Electronics | -4.07% | -1.02% | -0.50% |
| Preformed Line Products | 5.62% | 10.24% | 7.51% |
Insider & Institutional Ownership
79.3% of Universal Electronics shares are held by institutional investors. Comparatively, 41.2% of Preformed Line Products shares are held by institutional investors. 10.5% of Universal Electronics shares are held by company insiders. Comparatively, 35.1% of Preformed Line Products shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
Preformed Line Products beats Universal Electronics on 11 of the 14 factors compared between the two stocks.
About Universal Electronics
Universal Electronics Inc. designs, develops, manufactures, ships, and supports control and sensor technology solutions in the United States, the People’s Republic of China, rest of Asia, Europe, Latin America, and internationally. The company offers voice-enabled automatically-programmed universal two-way radio frequency, as well as infrared remote controls to video service providers, original equipment manufacturers (OEMs), retailers, and private label customers; wall-mount and handheld thermostat controllers and connected accessories for smart energy management systems to OEM customers, hotels, hospitality, and system integrators; proprietary and standards-based RF sensors for residential security, safety, and home automation applications; and integrated circuits on which its software and universal device control database is embedded to OEMs, video service providers, and private label customers. It also provides software, firmware and technology solutions that can enable devices such as Smart TVs, hybrid set-top boxes, audio systems, smart speakers, game consoles, and other consumer electronic and smart home devices to wirelessly connect and interoperate within home networks; cloud-services that support its embedded software and hardware solutions; intellectual property that the company licenses to OEMs and video service providers; embedded and cloud-enabled software for firmware update provisioning and digital rights management validation services to consumer electronics brands; and AV accessories, including universal remote controls, television wall mounts and stands, and digital television antennas. In addition, the company QuickSet, a software application that can be embedded in entertainment or smart home platform or can be delivered as a cloud-based service, through QuickSet Cloud, to enable universal device setup, interoperability, and control. Universal Electronics Inc. was incorporated in 1986 and is based in Scottsdale, Arizona.
About Preformed Line Products
Preformed Line Products Company, together with its subsidiaries, designs and manufactures products and systems that are used in the construction and maintenance of overhead, ground-mounted, and underground networks for the energy, telecommunication, cable, data communication, and other industries. The company offers optical ground wire products to support, protect, terminate, and splice transmission and distribution lines, as well as bolted, welded, and compressed connectors for substations; and string hardware products, polymer insulators, wildlife protection, substation fittings, and motion control devices. It also provides rugged outside plant closures to protect and support wireline and wireless networks, such as copper cable or fiber optic cable from moisture, environmental hazards, and other contaminants; and hardware assemblies, pole line hardware, plastic products, cable dynamics/vibration solutions, interior/exterior connectors, tools, and urethane solutions that are used by energy, renewable energy, communications, cable, and special industries for various applications. The company serves public and private energy utilities and communication companies, cable operators, governmental agencies, contractors and subcontractors, distributors, and value-added resellers in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. It markets its products through a direct sales force, as well as through manufacturing representatives. Preformed Line Products Company was incorporated in 1947 and is headquartered in Mayfield Village, Ohio.
Receive News & Ratings for Universal Electronics Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Universal Electronics and related companies with MarketBeat.com's FREE daily email newsletter.
