Reviewing Universal Electronics (NASDAQ:UEIC) & Gauzy (NASDAQ:GAUZ)

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

Earnings & Valuation

This table compares Universal Electronics and Gauzy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Electronics	$394.88 million	0.14	-$24.03 million	($1.67)	-2.40
Gauzy	$103.53 million	0.10	-$53.18 million	($2.05)	-0.27

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

Institutional & Insider Ownership

79.4% of Universal Electronics shares are owned by institutional investors. 9.4% of Universal Electronics shares are owned by company 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 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, Gauzy has a beta of 0.21, suggesting that its share price is 79% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Universal Electronics and Gauzy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Electronics	1	2	0	0	1.67
Gauzy	1	1	2	0	2.25

Universal Electronics currently has a consensus target price of $5.75, indicating a potential upside of 43.39%. Gauzy has a consensus target price of $11.00, indicating a potential upside of 1,900.00%. Given Gauzy’s stronger consensus rating and higher possible upside, analysts plainly believe Gauzy is more favorable than Universal Electronics.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Universal Electronics	-5.64%	-0.68%	-0.33%
Gauzy	-39.63%	-93.64%	-27.62%

Summary

Universal Electronics beats Gauzy on 10 of the 14 factors compared between the two stocks.

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 Gauzy

Gauzy Ltd. is a fully-integrated light and vision control company which focused on the research, development, manufacturing and marketing of vision and light control technologies. It operates principally in Germany, France, the United States, Canada, China, Singapore and Dubai. Gauzy Ltd. is headquartered in Tel Aviv, Israel.