Analyzing Ubiquiti (UI) & Its Rivals

Ubiquiti (NASDAQ:UIGet Rating) is one of 66 publicly-traded companies in the “Radio & t.v. communications equipment” industry, but how does it contrast to its competitors? We will compare Ubiquiti to similar companies based on the strength of its risk, analyst recommendations, dividends, earnings, valuation, institutional ownership and profitability.

Profitability

This table compares Ubiquiti and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ubiquiti 22.38% -228.08% 43.35%
Ubiquiti Competitors -186.33% -76.20% -5.41%

Volatility & Risk

Ubiquiti has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500. Comparatively, Ubiquiti’s competitors have a beta of 1.07, suggesting that their average stock price is 7% more volatile than the S&P 500.

Valuation and Earnings

This table compares Ubiquiti and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Ubiquiti $1.69 billion $378.66 million 47.45
Ubiquiti Competitors $3.44 billion $417.97 million 7.48

Ubiquiti’s competitors have higher revenue and earnings than Ubiquiti. Ubiquiti is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Ubiquiti and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ubiquiti 0 0 0 0 N/A
Ubiquiti Competitors 274 1566 2571 106 2.56

As a group, “Radio & t.v. communications equipment” companies have a potential upside of 52.21%. Given Ubiquiti’s competitors higher possible upside, analysts clearly believe Ubiquiti has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

4.1% of Ubiquiti shares are held by institutional investors. Comparatively, 46.5% of shares of all “Radio & t.v. communications equipment” companies are held by institutional investors. 90.1% of Ubiquiti shares are held by insiders. Comparatively, 20.4% of shares of all “Radio & t.v. communications equipment” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Ubiquiti pays an annual dividend of $2.40 per share and has a dividend yield of 0.8%. Ubiquiti pays out 39.2% of its earnings in the form of a dividend. As a group, “Radio & t.v. communications equipment” companies pay a dividend yield of 1.2% and pay out 38.1% of their earnings in the form of a dividend. Ubiquiti lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Ubiquiti competitors beat Ubiquiti on 7 of the 12 factors compared.

Ubiquiti Company Profile

(Get Rating)

Ubiquiti Inc. develops networking technology for service providers, enterprises, and consumers. The company 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 related software; and enterprise product platforms provide wireless LAN infrastructure, video surveillance products, switching and routing solutions, security gateways, and other WLAN products. The company also provides technology platforms, such as airMAX, 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, a plug and play fiber network technology to build high speed fiber internet networks. In addition, it offers UniFi -Enterprise WLAN, an enterprise Wi-Fi system that allows for on-site or remote management through the cloud; UniFi Protect, a video surveillance system, which provides statistical reporting and advanced analytics; UniFi Switch that deliver performance, switching, and power of ethernet support for enterprise networks; UniFi Console, an enterprise class router and security gateway device; and UniFi Access, a door access system. Further, the company provides base stations, radios, backhaul equipment, and customer premise equipment; embedded radio products; antennas; and mounting brackets, cables, and power over Ethernet adapters. It serves customers through a network of approximately 100 distributors, online retailers, and direct to customers 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.

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