Universal Electronics (NASDAQ:UEIC) versus Smith Douglas Homes (NYSE:SDHC) Head to Head Review

Universal Electronics (NASDAQ:UEIC) and Smith Douglas Homes (NYSE:SDHC) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, earnings, risk and dividends.

Earnings & Valuation

This table compares Universal Electronics and Smith Douglas Homes”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Electronics	$368.29 million	0.18	-$18.60 million	($1.16)	-4.38
Smith Douglas Homes	$971.12 million	0.57	$10.69 million	$0.72	15.00

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

Institutional and Insider Ownership

79.3% of Universal Electronics shares are owned by institutional investors. 17.1% of Universal Electronics shares are owned by company insiders. Comparatively, 84.2% of Smith Douglas Homes shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Universal Electronics and Smith Douglas Homes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Universal Electronics	-4.57%	2.70%	1.44%
Smith Douglas Homes	0.64%	-0.19%	-0.14%

Risk & Volatility

Universal Electronics has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500. Comparatively, Smith Douglas Homes has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Universal Electronics and Smith Douglas Homes, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Electronics	1	2	0	0	1.67
Smith Douglas Homes	2	7	1	0	1.90

Universal Electronics presently has a consensus target price of $4.25, suggesting a potential downside of 16.34%. Smith Douglas Homes has a consensus target price of $13.90, suggesting a potential upside of 28.70%. Given Smith Douglas Homes’ stronger consensus rating and higher probable upside, analysts clearly believe Smith Douglas Homes is more favorable than Universal Electronics.

Summary

Smith Douglas Homes beats Universal Electronics on 10 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 Smith Douglas Homes

Smith Douglas Homes Corp., together with its subsidiaries, engages in the design, construction, and sale of single-family homes in the southeastern United States. It also provides closing, escrow, and title insurance services. The company sells its products to entry-level and empty-nest homebuyers. Smith Douglas Homes Corp. was founded in 2008 and is headquartered in Woodstock, Georgia.