Analyzing Ultralife (NASDAQ:ULBI) & LSI Industries (NASDAQ:LYTS)

Ultralife (NASDAQ:ULBIGet Free Report) and LSI Industries (NASDAQ:LYTSGet Free Report) are both small-cap industrials companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Risk and Volatility

Ultralife has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, LSI Industries has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Ultralife and LSI Industries, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ultralife 1 0 0 0 1.00
LSI Industries 0 2 3 0 2.60

LSI Industries has a consensus target price of $29.00, indicating a potential upside of 41.46%. Given LSI Industries’ stronger consensus rating and higher possible upside, analysts clearly believe LSI Industries is more favorable than Ultralife.

Insider & Institutional Ownership

30.7% of Ultralife shares are owned by institutional investors. Comparatively, 73.9% of LSI Industries shares are owned by institutional investors. 42.9% of Ultralife shares are owned by company insiders. Comparatively, 7.3% of LSI Industries shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Ultralife and LSI Industries”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ultralife $187.24 million 0.50 -$5.90 million ($0.40) -14.05
LSI Industries $689.40 million 1.11 $22.58 million $0.67 30.60

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

Profitability

This table compares Ultralife and LSI Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ultralife -3.50% 2.75% 1.66%
LSI Industries 3.28% 7.51% 3.71%

Summary

LSI Industries beats Ultralife on 12 of the 14 factors compared between the two stocks.

About Ultralife

(Get Free Report)

Ultralife Corporation, together with its subsidiaries, designs, manufactures, installs, and maintains power, and communication and electronics systems worldwide. The company operates in two segments, Battery & Energy Products and Communications Systems. The Battery & Energy Products segment offers lithium 9-volt, cylindrical, thin lithium manganese dioxide, rechargeable, and other non-rechargeable batteries; lithium-ion cells, multi-kilowatt module lithium-ion battery systems, and uninterruptable power supplies; and rugged military and commercial battery charging systems and accessories, including smart chargers, multi-bay charging systems, and various cables. The Communications Systems segment provides communications systems and accessories to support military communications systems, such as radio frequency amplifiers, power supplies and cables, connector assemblies, amplified speakers, equipment mounts, case equipment, man-portable systems, and integrated communication systems for fixed or vehicle applications comprising vehicle adapters, vehicle installed power enhanced rifleman appliqué systems, and SATCOM systems. This segment's military communications systems and accessories are designed to enhance and extend the operation of communications equipment, such as vehicle-mounted, manpack, and handheld transceivers. The company sells its products under the Ultralife, Ultralife HiRate, Ultralife Thin Cell, Ultralife Batteries, Lithium Power, McDowell Research, AMTITM, ABLETM, ACCUTRONICS, ACCUPRO, ENTELLION, SWE Southwest Electronic Energy Group, SWE SEASAFE, Excell Battery Group, and Criterion Gauge brands through original equipment manufacturers, and industrial and defense supply distributors. In addition, it sells its 9-volt battery to the broader consumer market through national and regional retail chains and online retailers. It serves government, defense, and commercial sectors. The company was incorporated in 1990 and is headquartered in Newark, New York.

About LSI Industries

(Get Free Report)

LSI Industries Inc. produces and sells non-residential lighting and retail display solutions in the United States, Canada, Mexico, and Latin America. It operates through two segments, Lighting and Display Solutions. The Lighting segment manufactures, markets, and sells non-residential outdoor and indoor lighting fixture and control solutions in the commercial and industrial markets. This segment also offers lighting control products, including sensors, photocontrols, dimmers, motion detection, and Bluetooth systems to support lighting fixtures; and designs, engineers, and manufactures electronic circuit boards, assemblies, and sub-assemblies. The Display Solutions segment manufactures, sells, and installs exterior and interior visual image and display elements, including printed and structural graphics, digital signage, menu board systems, display fixtures, refrigerated displays, and custom display elements. This segments products and services include signage and canopy graphics, pump dispenser graphics, building fascia graphics, decals, interior signage and marketing graphics, aisle markers, wall mural graphics, and refrigerated and non-refrigerated merchandising displays. This segment also provides project management services comprising installation management, site surveys, permitting, and content management; and manages and executes the implementation of large rollout programs. It serves refueling and convenience store, parking lot and garage, quick-service restaurant, retail and grocery store, automotive, warehouse, sports court, and field markets, as well as warehouses. LSI Industries Inc. was founded in 1976 and is headquartered in Cincinnati, Ohio.

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