Reviewing Ubiquiti (UI) & The Competition

Ubiquiti (NASDAQ:UIGet Rating) is one of 64 publicly-traded companies in the “Radio & t.v. communications equipment” industry, but how does it weigh in compared to its rivals? We will compare Ubiquiti to similar companies based on the strength of its earnings, dividends, risk, valuation, analyst recommendations, profitability and institutional ownership.

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 1.2% and pay out 35.2% of their earnings in the form of a dividend.

Institutional and Insider Ownership

5.9% of Ubiquiti shares are held by institutional investors. Comparatively, 46.4% of shares of all “Radio & t.v. communications equipment” companies are held by institutional investors. 90.1% of Ubiquiti shares are held by company insiders. Comparatively, 20.7% of shares of all “Radio & t.v. communications equipment” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Ubiquiti has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500. Comparatively, Ubiquiti’s rivals have a beta of 1.12, meaning that their average stock price is 12% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Ubiquiti and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ubiquiti 0 0 0 0 N/A
Ubiquiti Competitors 439 1968 2675 130 2.48

As a group, “Radio & t.v. communications equipment” companies have a potential upside of 48.97%. Given Ubiquiti’s rivals higher possible upside, analysts plainly believe Ubiquiti has less favorable growth aspects than its rivals.

Profitability

This table compares Ubiquiti and its rivals’ 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 -173.45% -3,520.85% 1.04%

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Ubiquiti $1.90 billion $616.58 million 33.39
Ubiquiti Competitors $3.57 billion $444.81 million 26.35

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

Summary

Ubiquiti beats its rivals 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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