Analyzing Focus Universal (NASDAQ:FCUV) & Arrow Electronics (NYSE:ARW)

Focus Universal (NASDAQ:FCUV) and Arrow Electronics (NYSE:ARW) are both technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, valuation, analyst recommendations, profitability and earnings.

Volatility and Risk

Focus Universal has a beta of -0.65, suggesting that its stock price is 165% less volatile than the S&P 500. Comparatively, Arrow Electronics has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.

Profitability

This table compares Focus Universal and Arrow Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Focus Universal	-637.15%	-151.07%	-51.03%
Arrow Electronics	2.26%	13.41%	2.83%

Valuation & Earnings

This table compares Focus Universal and Arrow Electronics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Focus Universal	$752,581.00	4.42	-$4.79 million	($15.01)	-0.32
Arrow Electronics	$35.92 billion	0.32	$571.27 million	$15.65	14.30

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

Insider & Institutional Ownership

4.4% of Focus Universal shares are held by institutional investors. Comparatively, 99.3% of Arrow Electronics shares are held by institutional investors. 22.8% of Focus Universal shares are held by company insiders. Comparatively, 0.8% of Arrow Electronics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Focus Universal and Arrow Electronics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Focus Universal	1	0	0	0	1.00
Arrow Electronics	1	1	3	1	2.67

Arrow Electronics has a consensus target price of $233.25, suggesting a potential upside of 4.20%. Given Arrow Electronics’ stronger consensus rating and higher possible upside, analysts plainly believe Arrow Electronics is more favorable than Focus Universal.

Summary

Arrow Electronics beats Focus Universal on 13 of the 15 factors compared between the two stocks.

About Focus Universal

Focus Universal Inc. develops and manufactures smart instrumentation platform and device. It offers Ubiquitor, a wireless sensor device with a universal sensor node and gateway system that uses a computer or mobile device as the output display module that displays the readings of various sensor nodes. The company's universal smart instrumentation platform (USIP) utilizes mobile devices or computers to communicate with smart devices, such as sensors, instruments, probes, and controllers to monitor and control any functions. It also offers digital sensors and horticultural sensors, as well as universal smart controller (USC), a controller device. Further, the company provides filter and handheld meter products, including fan speed adjuster, carbon filter, and HEPA filtration systems, as well as digital light and quantum par meters through distributors. Additionally, it provides integration of houses, apartment, commercial complex, and office spaces with audio, visual, and control systems to integrate devices in the low voltage field, as well as partial equipment upgrade and installation services. The company was incorporated in 2012 and is based in Ontario, California.

About Arrow Electronics

Arrow Electronics, Inc. provides products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments, Global Components and Global Enterprise Computing Solutions. The Global Components segment markets and distributes electronic components comprising semiconductor products and related services; interconnect, passive, and electromechanical products, including capacitors, resistors, potentiometers, power supplies, relays, switches, and connectors; and computing and memory products, as well as other products and services. The Global Enterprise Computing Solutions segment offers computing solutions, such as datacenter, cloud, security, and analytics solutions. This segment also provides access to various services, including engineering and integration support, warehousing and logistics, marketing resources, and authorized hardware and software training. The company serves original equipment manufacturers, value-added resellers, managed service providers, contract manufacturers, and other commercial customers. Arrow Electronics, Inc. was founded in 1935 and is based in Centennial, Colorado.