Traeger (NYSE:COOK) and Universal Electronics (NASDAQ:UEIC) Financial Analysis

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Electronics	$330.57 million	0.18	-$18.60 million	($1.16)	-4.06
Traeger	$559.52 million	0.25	-$115.18 million	($42.04)	-1.19

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

Insider & Institutional Ownership

79.3% of Universal Electronics shares are held by institutional investors. Comparatively, 46.8% of Traeger shares are held by institutional investors. 17.1% of Universal Electronics shares are held by insiders. Comparatively, 16.2% of Traeger shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Universal Electronics has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, Traeger has a beta of 1.93, meaning that its share price is 93% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for Universal Electronics and Traeger, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Electronics	1	2	0	0	1.67
Traeger	1	5	1	0	2.00

Universal Electronics presently has a consensus price target of $4.25, suggesting a potential downside of 9.77%. Traeger has a consensus price target of $50.50, suggesting a potential upside of 0.95%. Given Traeger’s stronger consensus rating and higher possible upside, analysts clearly believe Traeger is more favorable than Universal Electronics.

Profitability

This table compares Universal Electronics and Traeger’s 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%
Traeger	-23.23%	-13.76%	-3.59%

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 Traeger

Traeger, Inc., together with its subsidiaries, designs, sources, sells, and supports wood pellet fueled barbecue grills for retailers, distributors, and direct to consumers in the United States. Its wood pellet grills are internet of things devices that allow owners to program, monitor, and control their grill through its Traeger app. The company also produces a library of digital content, including instructional recipes and videos that demonstrate tips, tricks, and cooking techniques that empower Traeger owners to progress their cooking skills; and short- and long-form branded content highlighting stories, community members, and lifestyle content from the Traegerhood. In addition, it provides wood pellets that are used to fire the grills; rubs, spices, and sauces; accessories, such as pop-and-lock accessory rail covers, drip trays, bucket liners, storage bins, and shelves; tools to aid in meal prep, cooking, and cleanup, including pellet storage systems, cleaning solutions, barbecue tools, and MEATER smart thermometer; replacement parts; and apparel and merchandise, including t-shirts, hooded sweatshirts, and baseball hats. Traeger, Inc. was founded in 1987 and is headquartered in Salt Lake City, Utah.