Universal (NYSE:UVV – Get Free Report) and Ispire Technology (NASDAQ:ISPR – Get Free Report) are both small-cap consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.
Earnings and Valuation
This table compares Universal and Ispire Technology”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Universal | $2.95 billion | 0.46 | $95.05 million | $3.78 | 14.54 |
| Ispire Technology | $151.91 million | 1.11 | -$14.77 million | ($0.49) | -6.00 |
Insider and Institutional Ownership
81.0% of Universal shares are owned by institutional investors. Comparatively, 5.0% of Ispire Technology shares are owned by institutional investors. 1.9% of Universal shares are owned by company insiders. Comparatively, 65.4% of Ispire Technology shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Universal and Ispire Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Universal | 3.22% | 7.89% | 3.84% |
| Ispire Technology | -19.26% | -107.00% | -22.33% |
Analyst Recommendations
This is a summary of current ratings and price targets for Universal and Ispire Technology, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Universal | 0 | 0 | 0 | 0 | 0.00 |
| Ispire Technology | 0 | 0 | 1 | 1 | 3.50 |
Ispire Technology has a consensus target price of $7.50, indicating a potential upside of 155.10%. Given Ispire Technology’s stronger consensus rating and higher probable upside, analysts plainly believe Ispire Technology is more favorable than Universal.
Risk & Volatility
Universal has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, Ispire Technology has a beta of 2.82, indicating that its stock price is 182% more volatile than the S&P 500.
Summary
Universal beats Ispire Technology on 8 of the 15 factors compared between the two stocks.
About Universal
Universal Corporation processes and supplies leaf tobacco and plant-based ingredients worldwide. The company operates through two segments, Tobacco Operations; and Ingredients Operations. It is involved in the procuring, financing, processing, packing, storing, and shipping leaf tobacco for sale to manufacturers of consumer tobacco products. The company contracts, purchases, processes, and sells flue-cured, burley, and oriental tobaccos that are primarily used in the manufacture of cigarettes; and dark air-cured tobaccos principally used in the manufacture of cigars, natural wrapped cigars and cigarillos, smokeless, and pipe tobacco products. It also provides value-added services, including blending, chemical, and physical testing of tobacco; service cutting for various manufacturers; manufacturing reconstituted leaf tobacco; just-in-time inventory management services; electronic nicotine delivery systems; and smoke testing services for customers. In addition, the company offers testing services for crop protection agents and tobacco constituents in seed, leaf, and finished products, including e-cigarette liquids and vapors; and analytical services that include chemical compound testing in finished tobacco products and mainstream smoke. Further, it provides a various value-added manufacturing processes to produce specialty vegetable and fruit-based ingredients, as well as botanical extracts and flavorings for human and pet food markets; and recycles waste materials from tobacco production. Universal Corporation was founded in 1886 and is headquartered in Richmond, Virginia.
About Ispire Technology
Ispire Technology Inc. researches, develops, designs, commercializes, sales, markets, and distributes e-cigarettes and cannabis vaping products worldwide. The company was founded in 2019 and is based in Los Angeles, California. Ispire Technology Inc. operates as a subsidiary of Pride Worldwide Investment Limited.
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