Critical Review: Universal Electronics (NASDAQ:UEIC) and Stardust Power (NASDAQ:SDST)

Stardust Power (NASDAQ:SDST) and Universal Electronics (NASDAQ:UEIC) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitability.

Volatility and Risk

Stardust Power has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500. Comparatively, Universal Electronics has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.

Earnings and Valuation

This table compares Stardust Power and Universal Electronics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stardust Power	N/A	N/A	-$23.75 million	($3.93)	-0.92
Universal Electronics	$394.88 million	0.14	-$24.03 million	($1.67)	-2.44

Stardust Power has higher earnings, but lower revenue than Universal Electronics. Universal Electronics is trading at a lower price-to-earnings ratio than Stardust Power, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

32.8% of Stardust Power shares are owned by institutional investors. Comparatively, 79.4% of Universal Electronics shares are owned by institutional investors. 55.3% of Stardust Power shares are owned by company insiders. Comparatively, 10.5% of Universal Electronics shares are owned 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.

Profitability

This table compares Stardust Power and Universal Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stardust Power	N/A	N/A	-185.06%
Universal Electronics	-5.64%	-0.68%	-0.33%

Analyst Ratings

This is a summary of recent recommendations for Stardust Power and Universal Electronics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stardust Power	1	1	1	1	2.50
Universal Electronics	1	2	0	0	1.67

Stardust Power currently has a consensus target price of $17.25, suggesting a potential upside of 379.17%. Universal Electronics has a consensus target price of $5.75, suggesting a potential upside of 40.93%. Given Stardust Power’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Stardust Power is more favorable than Universal Electronics.

Summary

Stardust Power beats Universal Electronics on 9 of the 14 factors compared between the two stocks.

About Stardust Power

Stardust Power Inc. is a vertically-integrated lithium refinery that engages in producing battery-grade lithium. The company was founded in 2022 and is based in Greenwich, Connecticut.

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.