Analyzing Ubiquiti (UI) & Its Rivals

Ubiquiti (NASDAQ:UIGet Rating) is one of 65 public companies in the “Radio & t.v. communications equipment” industry, but how does it weigh in compared to its peers? We will compare Ubiquiti to similar companies based on the strength of its earnings, institutional ownership, risk, valuation, dividends, analyst recommendations and profitability.

Dividends

Ubiquiti pays an annual dividend of $2.40 per share and has a dividend yield of 0.8%. Ubiquiti pays out 28.1% of its earnings in the form of a dividend. As a group, “Radio & t.v. communications equipment” companies pay a dividend yield of 1.1% and pay out 35.2% of their earnings in the form of a dividend.

Insider & Institutional Ownership

5.9% of Ubiquiti shares are held by institutional investors. Comparatively, 45.8% 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, 20.2% of shares of all “Radio & t.v. communications equipment” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Ubiquiti and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Ubiquiti $1.90 billion $616.58 million 34.24
Ubiquiti Competitors $3.50 billion $435.41 million 22.55

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

Analyst Ratings

This is a breakdown of recent ratings for Ubiquiti and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ubiquiti 0 0 0 0 N/A
Ubiquiti Competitors 445 1998 2723 133 2.48

As a group, “Radio & t.v. communications equipment” companies have a potential upside of 50.49%. Given Ubiquiti’s peers higher possible upside, analysts clearly believe Ubiquiti has less favorable growth aspects than its peers.

Volatility & Risk

Ubiquiti has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500. Comparatively, Ubiquiti’s peers have a beta of 1.11, meaning that their average stock price is 11% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Ubiquiti 29.21% -57,441.32% 58.25%
Ubiquiti Competitors -169.01% -3,414.54% 0.69%

Summary

Ubiquiti beats its peers on 7 of the 12 factors compared.

Ubiquiti Company Profile (Get Rating)

Ubiquiti Inc. develops networking technology for service providers, enterprises, and consumers. It 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 enterprise product platforms provide wireless LAN infrastructure, video surveillance products, switching and routing solutions, security gateways, and other WLAN products, as well as consumer products under the Ubiquiti Labs brand name. 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 and 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, offers 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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