Contrasting Universal Electronics (NASDAQ:UEIC) & Research Frontiers (NASDAQ:REFR)

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

Earnings & Valuation

This table compares Research Frontiers and Universal Electronics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Research Frontiers	$1.23 million	28.51	-$1.31 million	($0.06)	-17.33
Universal Electronics	$391.00 million	0.14	-$24.03 million	($1.67)	-2.45

Research Frontiers has higher earnings, but lower revenue than Universal Electronics. Research Frontiers is trading at a lower price-to-earnings ratio than Universal Electronics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Research Frontiers and Universal Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Research Frontiers	-153.95%	-90.72%	-54.95%
Universal Electronics	-5.64%	-0.68%	-0.33%

Institutional and Insider Ownership

11.9% of Research Frontiers shares are owned by institutional investors. Comparatively, 79.3% of Universal Electronics shares are owned by institutional investors. 6.5% of Research Frontiers shares are owned by insiders. Comparatively, 9.4% of Universal Electronics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Research Frontiers and Universal Electronics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Research Frontiers	1	0	0	0	1.00
Universal Electronics	1	2	0	0	1.67

Universal Electronics has a consensus price target of $5.75, suggesting a potential upside of 40.59%. Given Universal Electronics’ stronger consensus rating and higher probable upside, analysts plainly believe Universal Electronics is more favorable than Research Frontiers.

Volatility and Risk

Research Frontiers has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500. Comparatively, Universal Electronics has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500.

Summary

Universal Electronics beats Research Frontiers on 10 of the 13 factors compared between the two stocks.

About Research Frontiers

Research Frontiers Incorporated engages in the development and marketing of technology and devices to control the flow of light worldwide. It develops and licenses suspended particle device (SPD-Smart) light-control technology to companies that manufacture and market the SPD-Smart chemical emulsion, light-control film made from the chemical emulsion, the light-control panels made by laminating the film, and electronics to power end-products incorporating the film, as well as lamination services for and the end-products, such as windows, skylights, and sunroofs. The company's SPD-Smart light-control technology is used in various product applications, including windows, sunshades, skylights, and interior partitions for homes and buildings; automotive windows, sunroofs, sun-visors, sunshades, rear-view mirrors, instrument panels, and navigation systems; aircraft windows; museum display panels, and eyewear products; and flat panel displays for electronic products. It serves architectural, automotive, marine, and aerospace and appliance applications. The company was incorporated in 1965 and is headquartered in Woodbury, New York.

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.