Financial Comparison: Universal Electronics (NASDAQ:UEIC) versus Erayak Power Solution Group (NASDAQ:RAYA)

Universal Electronics (NASDAQ:UEIC) and Erayak Power Solution Group (NASDAQ:RAYA) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, risk, profitability and valuation.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Universal Electronics and Erayak Power Solution Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Electronics	0	1	1	0	2.50
Erayak Power Solution Group	0	0	0	0	0.00

Universal Electronics currently has a consensus price target of $11.00, suggesting a potential upside of 113.18%. Given Universal Electronics’ stronger consensus rating and higher possible upside, research analysts plainly believe Universal Electronics is more favorable than Erayak Power Solution Group.

Institutional & Insider Ownership

79.4% of Universal Electronics shares are held by institutional investors. Comparatively, 0.3% of Erayak Power Solution Group shares are held by institutional investors. 9.4% of Universal Electronics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Universal Electronics has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500. Comparatively, Erayak Power Solution Group has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500.

Valuation and Earnings

This table compares Universal Electronics and Erayak Power Solution Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Electronics	$394.88 million	0.17	-$24.03 million	($1.25)	-4.13
Erayak Power Solution Group	$30.30 million	0.06	-$1.12 million	N/A	N/A

Erayak Power Solution Group has lower revenue, but higher earnings than Universal Electronics.

Profitability

This table compares Universal Electronics and Erayak Power Solution Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Universal Electronics	-4.07%	-1.02%	-0.50%
Erayak Power Solution Group	N/A	N/A	N/A

Summary

Universal Electronics beats Erayak Power Solution Group on 8 of the 12 factors compared between the two stocks.

About Universal Electronics

Universal Electronics Inc. designs, develops, manufactures, ships, and supports control and sensor technology solutions in the United States, the People’s Republic of China, rest of Asia, Europe, Latin America, and internationally. The company offers voice-enabled automatically-programmed universal two-way radio frequency, as well as infrared remote controls to video service providers, original equipment manufacturers (OEMs), retailers, and private label customers; wall-mount and handheld thermostat controllers and connected accessories for smart energy management systems to OEM customers, hotels, hospitality, and system integrators; proprietary and standards-based RF sensors for residential security, safety, and home automation applications; and integrated circuits on which its software and universal device control database is embedded to OEMs, video service providers, and private label customers. It also provides software, firmware and technology solutions that can enable devices such as Smart TVs, hybrid set-top boxes, audio systems, smart speakers, game consoles, and other consumer electronic and smart home devices to wirelessly connect and interoperate within home networks; cloud-services that support its embedded software and hardware solutions; intellectual property that the company licenses to OEMs and video service providers; embedded and cloud-enabled software for firmware update provisioning and digital rights management validation services to consumer electronics brands; and AV accessories, including universal remote controls, television wall mounts and stands, and digital television antennas. In addition, the company QuickSet, a software application that can be embedded in entertainment or smart home platform or can be delivered as a cloud-based service, through QuickSet Cloud, to enable universal device setup, interoperability, and control. Universal Electronics Inc. was incorporated in 1986 and is based in Scottsdale, Arizona.

About Erayak Power Solution Group

Erayak Power Solution Group Inc., through its subsidiaries, engages in the research and development, manufacture, and wholesale and retail of power solution products. Its product portfolio includes sine wave and off-grid inverters, inverter and gasoline generators, battery and smart chargers, and custom-designed products. The company's products are used in agricultural and industrial vehicles, recreational vehicles, electrical appliances, and outdoor living products. It operates in China, France, Poland, Mexico, and the United Kingdom. The company was incorporated in 2019 and is based in Wenzhou, the People's Republic of China. Erayak Power Solution Group Inc. operates as a subsidiary of Erayak International Limited.