Ubiquiti (NYSE:UI) and KVH Industries (NYSE:KVHI) Financial Survey

Ubiquiti (NYSE:UI) and KVH Industries (NASDAQ:KVHI) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, dividends, institutional ownership and risk.

Profitability

This table compares Ubiquiti and KVH Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ubiquiti 27.78% 206.17% 37.61%
KVH Industries 22.83% -6.13% -3.41%

Analyst Ratings

This is a summary of recent ratings for Ubiquiti and KVH Industries, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ubiquiti 0 0 1 0 3.00
KVH Industries 0 0 4 0 3.00

KVH Industries has a consensus price target of $14.75, suggesting a potential upside of 47.65%. Given KVH Industries’ higher possible upside, analysts clearly believe KVH Industries is more favorable than Ubiquiti.

Volatility and Risk

Ubiquiti has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500. Comparatively, KVH Industries has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.

Earnings & Valuation

This table compares Ubiquiti and KVH Industries’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ubiquiti $1.16 billion 7.47 $322.69 million $4.74 26.66
KVH Industries $170.76 million 1.05 -$8.23 million ($0.12) -83.25

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

Institutional and Insider Ownership

19.1% of Ubiquiti shares are owned by institutional investors. Comparatively, 56.3% of KVH Industries shares are owned by institutional investors. 78.7% of Ubiquiti shares are owned by insiders. Comparatively, 11.3% of KVH Industries shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Ubiquiti pays an annual dividend of $1.20 per share and has a dividend yield of 0.9%. KVH Industries does not pay a dividend. Ubiquiti pays out 25.3% of its earnings in the form of a dividend.

Summary

Ubiquiti beats KVH Industries on 11 of the 15 factors compared between the two stocks.

About Ubiquiti

Ubiquiti Inc. develops networking technology for service providers, enterprises, and consumers worldwide. It develops technology platforms for high-capacity distributed Internet access, unified information technology, and consumer electronics for professional, home, and personal use. Its service provider product platforms offer carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems, and routing; and enterprise product platforms provide wireless LAN infrastructure, video surveillance products, switching and routing solutions, security gateways, and other WLAN products, as well as offers consumer products under the Ubiquiti Labs brand name. The company also provides technology platforms, such as airMAX platform, which include proprietary protocols that contain technologies for minimizing signal noise; EdgeMAX, a software and system routing platform; airFiber, a point-to-point radio system; and UFiber GPON platform to build high speed fiber Internet networks. In addition, it offers UniFi Enterprise WLAN; UniFi Video, a video surveillance system; UniFi Switch that deliver performance, switching, and PoE+ support for enterprise networks; and UniFi Security Gateway that provide routing and network security, as well as develops AmpliFi platform, a Wi-Fi system solution for connected homes. Further, Ubiquiti Inc. offers embedded radio products; and mounting brackets, cables, and power over Ethernet adapters. It serves customers through a network of approximately 100 distributors and online retailers worldwide. The company was formerly known as Ubiquiti Networks, Inc. and changed its name to Ubiquiti Inc. in August 2019. Ubiquiti Inc. was incorporated in 2003 and is headquartered in New York, New York.

About KVH Industries

KVH Industries, Inc. designs, develops, manufactures, and markets mobile connectivity products and services for the marine and land mobile markets in the United States and internationally. The company offers mobile satellite TV and communications products; two-way satellite communications systems; onboard V-IP terminals and hub equipment; network management hardware and software products for maritime communications; and Iridium OpenPort hardware products and services. It also offers airtime plans that enable customers to obtain Internet and voice services; and value-added, and news and radio content services. In addition, the company provides navigation, guidance, and stabilization products for the commercial and defense markets comprising precision fiber optic gyro-based systems that enable platform and optical stabilization, navigation, pointing, and guidance; tactical navigation systems for tactical trucks and light armored vehicles; and commercial products, such as navigation and positioning systems for various applications consisting of precision mapping, dynamic surveying, autonomous vehicles, train location control and track geometry measurement systems, industrial robotics, and optical stabilization applications. Further, it offers content, maritime news, sporting content, and television programming delivery services; movie distribution services; maritime e-learning content and related services; and services and support for the mini-VSAT Broadband solution. The company sells its mobile communications products through a network of independent retailers, chain stores, distributors, and service providers; and navigation products directly to the United States and foreign governments, and government contractors, as well as through authorized independent sales representatives. The company also sells and leases its products directly to end users. KVH Industries, Inc. was founded in 1978 and is headquartered in Middletown, Rhode Island.

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