Head-To-Head Review: NOVONIX (NASDAQ:NVX) and Universal Electronics (NASDAQ:UEIC)

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

Volatility and Risk

NOVONIX has a beta of 2.67, meaning that its share price is 167% more volatile than the S&P 500. Comparatively, Universal Electronics has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NOVONIX	N/A	N/A	N/A
Universal Electronics	-5.05%	-0.47%	-0.24%

Institutional & Insider Ownership

0.1% of NOVONIX shares are owned by institutional investors. Comparatively, 79.4% of Universal Electronics shares are owned by institutional investors. 23.7% of NOVONIX 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 hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares NOVONIX and Universal Electronics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NOVONIX	$5.62 million	28.39	-$92.72 million	N/A	N/A
Universal Electronics	$368.29 million	0.14	-$18.60 million	($1.40)	-2.94

Universal Electronics has higher revenue and earnings than NOVONIX.

Analyst Recommendations

This is a summary of current ratings for NOVONIX and Universal Electronics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NOVONIX	1	0	0	0	1.00
Universal Electronics	1	2	0	0	1.67

Universal Electronics has a consensus target price of $5.75, suggesting a potential upside of 39.56%. Given Universal Electronics’ stronger consensus rating and higher probable upside, analysts plainly believe Universal Electronics is more favorable than NOVONIX.

Summary

NOVONIX beats Universal Electronics on 6 of the 11 factors compared between the two stocks.

About NOVONIX

NOVONIX Limited provides battery materials and development technology for battery manufacturers, materials companies, automotive original equipment manufacturers (OEMs), and consumer electronics manufacturers in North America, Asia, Australia, and Europe. It operates through Battery Materials and Battery Technology segments. The Battery Materials segment develops and manufactures battery anode materials. The Battery Technology segment develops battery cell testing equipment, performs consulting services, and carries out research and development in battery development. The company is involved in the investment and real estate borrowing activities; and offers battery technology, battery testing hardware equipment, and battery testing and development consulting services. The company was formerly known as Graphitecorp Limited and changed its name to NOVONIX Limited in July 2017. NOVONIX Limited was incorporated in 2012 and is based in Brisbane, Australia.

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.