Universal Electronics (NASDAQ:UEIC) & Gauzy (NASDAQ:GAUZ) Financial Analysis

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gauzy	-39.63%	-93.64%	-27.62%
Universal Electronics	-5.64%	-0.68%	-0.33%

Earnings and Valuation

This table compares Gauzy and Universal Electronics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gauzy	$103.53 million	0.09	-$53.18 million	($2.05)	-0.24
Universal Electronics	$394.88 million	0.13	-$24.03 million	($1.67)	-2.33

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

Institutional & Insider Ownership

79.4% of Universal Electronics shares are owned by institutional investors. 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.

Risk and Volatility

Gauzy has a beta of 0.2, meaning that its stock price is 80% less volatile than the S&P 500. Comparatively, Universal Electronics has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Gauzy and Universal Electronics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gauzy	1	1	2	0	2.25
Universal Electronics	1	2	0	0	1.67

Gauzy presently has a consensus price target of $11.00, suggesting a potential upside of 2,100.00%. Universal Electronics has a consensus price target of $5.75, suggesting a potential upside of 47.81%. Given Gauzy’s stronger consensus rating and higher possible upside, analysts clearly believe Gauzy is more favorable than Universal Electronics.

Summary

Universal Electronics beats Gauzy on 10 of the 14 factors compared between the two stocks.

About Gauzy

Gauzy Ltd. is a fully-integrated light and vision control company which focused on the research, development, manufacturing and marketing of vision and light control technologies. It operates principally in Germany, France, the United States, Canada, China, Singapore and Dubai. Gauzy Ltd. is headquartered in Tel Aviv, Israel.

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.