Ubiquiti (UI) vs. Its Peers Critical Survey

Ubiquiti (NASDAQ:UIGet Rating) is one of 66 public companies in the “Radio & t.v. communications equipment” industry, but how does it compare to its peers? We will compare Ubiquiti to similar companies based on the strength of its earnings, profitability, dividends, risk, analyst recommendations, institutional ownership and valuation.

Risk & Volatility

Ubiquiti has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500. Comparatively, Ubiquiti’s peers have a beta of 1.07, meaning that their average share price is 7% more volatile than the S&P 500.

Dividends

Ubiquiti pays an annual dividend of $2.40 per share and has a dividend yield of 0.8%. Ubiquiti pays out 39.2% 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 38.1% of their earnings in the form of a dividend. Ubiquiti lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ubiquiti 0 0 0 0 N/A
Ubiquiti Competitors 271 1564 2566 106 2.56

As a group, “Radio & t.v. communications equipment” companies have a potential upside of 39.37%. Given Ubiquiti’s peers higher possible upside, analysts clearly believe Ubiquiti has less favorable growth aspects than its peers.

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 22.38% -228.08% 43.35%
Ubiquiti Competitors -188.61% -77.35% -4.85%

Institutional & Insider Ownership

4.1% of Ubiquiti shares are held by institutional investors. Comparatively, 47.1% 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, 20.6% of shares of all “Radio & t.v. communications equipment” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Ubiquiti $1.69 billion $378.66 million 51.36
Ubiquiti Competitors $3.44 billion $417.97 million 9.02

Ubiquiti’s peers have higher revenue and 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.

Summary

Ubiquiti peers beat Ubiquiti on 7 of the 12 factors compared.

About Ubiquiti

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Ubiquiti Inc. develops networking technology for service providers, enterprises, and consumers. The company 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 related software; and enterprise product platforms provide wireless LAN infrastructure, video surveillance products, switching and routing solutions, security gateways, and other WLAN products. 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 or 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, the company provides 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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