Contrasting HTC (OTCMKTS:HTCXF) & Ubiquiti (NYSE:UI)

Ubiquiti (NYSE:UI) and HTC (OTCMKTS:HTCXF) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Valuation & Earnings

This table compares Ubiquiti and HTC”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ubiquiti	$1.93 billion	13.47	$349.96 million	$9.08	47.30
HTC	$95.93 million	N/A	-$106.31 million	($0.12)	-10.19

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Ubiquiti and HTC, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ubiquiti	1	0	1	0	2.00
HTC	0	0	0	0	0.00

Ubiquiti currently has a consensus price target of $343.50, indicating a potential downside of 20.01%. Given Ubiquiti’s stronger consensus rating and higher probable upside, analysts clearly believe Ubiquiti is more favorable than HTC.

Insider and Institutional Ownership

4.0% of Ubiquiti shares are held by institutional investors. 93.1% of Ubiquiti shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Ubiquiti and HTC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ubiquiti	23.65%	217.49%	45.81%
HTC	46.08%	6.40%	3.06%

Summary

Ubiquiti beats HTC on 10 of the 11 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, door access systems, 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 wireless backhaul 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 Gateway Console, an enterprise class router and security gateway device; UniFi Wi-Fi, an enterprise Wi-Fi system; 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 Access, a door access system; and UniFi Talk, a plug-and-play phone system and VoIP subscription service. Further, the company provides base stations, radios, backhaul equipment, and customer premise equipment; embedded radio products; and antennas. It serves customers through a network of 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 HTC

HTC Corporation designs and manufactures mobile devices. Its portfolio includes smartphones and tablets powered by the Android or Windows Phone operating systems. It offers its products under the brand named HTC, including HTC Wildfire, HTC Desire, HTC Flyer, HTC ChaCha, HTC Salsa, HTC Incredible S, HTC Sensation, HTC 7 Mozart, HTC Aria and HTC 7 Trophy, among others. HTC Corporation is headquartered in Taoyuan County, Taiwan.