Leo Holdings Corp. II (NYSE:LHC) vs. Ubiquiti (NYSE:UI) Critical Contrast

Ubiquiti (NYSE:UI) and Leo Holdings Corp. II (NYSE:LHC) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, valuation, risk, institutional ownership and earnings.

Analyst Recommendations

This is a summary of current recommendations and price targets for Ubiquiti and Leo Holdings Corp. II, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ubiquiti	1	0	0	0	1.00
Leo Holdings Corp. II	0	0	0	0	N/A

Ubiquiti currently has a consensus price target of $141.00, indicating a potential downside of 19.22%. Given Ubiquiti’s higher probable upside, equities research analysts plainly believe Ubiquiti is more favorable than Leo Holdings Corp. II.

Earnings and Valuation

This table compares Ubiquiti and Leo Holdings Corp. II’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ubiquiti	$1.94 billion	5.44	$407.64 million	$6.75	25.86
Leo Holdings Corp. II	N/A	N/A	$13.16 million	N/A	N/A

Ubiquiti has higher revenue and earnings than Leo Holdings Corp. II.

Insider and Institutional Ownership

3.5% of Ubiquiti shares are owned by institutional investors. Comparatively, 36.5% of Leo Holdings Corp. II shares are owned by institutional investors. 93.2% of Ubiquiti shares are owned by insiders. Comparatively, 0.2% of Leo Holdings Corp. II shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Ubiquiti and Leo Holdings Corp. II’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ubiquiti	21.01%	-186.64%	32.69%
Leo Holdings Corp. II	N/A	-38.86%	2.68%

Summary

Ubiquiti beats Leo Holdings Corp. II on 6 of the 8 factors compared between the two stocks.

About Ubiquiti

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.

About Leo Holdings Corp. II

Leo Holdings Corp. II does not have significant operations. The company focuses on effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses. The company was incorporated in 2020 and is based in Nassau, the Bahamas.