Head to Head Comparison: PulteGroup (NYSE:PHM) versus Universal Electronics (NASDAQ:UEIC)

PulteGroup (NYSE:PHM) and Universal Electronics (NASDAQ:UEIC) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PulteGroup	11.62%	15.21%	10.89%
Universal Electronics	-4.57%	2.70%	1.44%

Insider and Institutional Ownership

89.9% of PulteGroup shares are owned by institutional investors. Comparatively, 79.3% of Universal Electronics shares are owned by institutional investors. 0.7% of PulteGroup shares are owned by company insiders. Comparatively, 17.1% of Universal Electronics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares PulteGroup and Universal Electronics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PulteGroup	$17.31 billion	1.41	$2.22 billion	$9.79	13.29
Universal Electronics	$368.29 million	0.18	-$18.60 million	($1.16)	-4.54

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

Volatility & Risk

PulteGroup has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, Universal Electronics has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for PulteGroup and Universal Electronics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PulteGroup	0	7	10	0	2.59
Universal Electronics	1	2	0	0	1.67

PulteGroup presently has a consensus price target of $143.14, indicating a potential upside of 10.00%. Universal Electronics has a consensus price target of $4.25, indicating a potential downside of 19.35%. Given PulteGroup’s stronger consensus rating and higher probable upside, equities research analysts clearly believe PulteGroup is more favorable than Universal Electronics.

Summary

PulteGroup beats Universal Electronics on 12 of the 13 factors compared between the two stocks.

About PulteGroup

PulteGroup, Inc., through its subsidiaries, primarily engages in the homebuilding business in the United States. It acquires and develops land primarily for residential purposes; and constructs housing on such land. The company also offers various home designs, including single-family detached, townhomes, condominiums, and duplexes under the Centex, Pulte Homes, Del Webb, DiVosta Homes, John Wieland Homes and Neighborhoods, and American West brand names. In addition, the company arranges financing through the origination of mortgage loans primarily for homebuyers; sells the servicing rights for the originated loans; and provides title insurance policies, and examination and closing services to homebuyers. PulteGroup, Inc. was founded in 1950 and is headquartered in Atlanta, Georgia.

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.