Critical Analysis: Skullcandy (SKUL) & Vuzix Corporation (VUZI)
Skullcandy (NASDAQ: SKUL) and Vuzix Corporation (NASDAQ:VUZI) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitabiliy, dividends, valuation, earnings, risk and analyst recommendations.
This is a breakdown of current recommendations for Skullcandy and Vuzix Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Skullcandy currently has a consensus price target of $6.18, suggesting a potential downside of 2.60%. Vuzix Corporation has a consensus price target of $10.50, suggesting a potential upside of 73.55%. Given Vuzix Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Vuzix Corporation is more favorable than Skullcandy.
Earnings & Valuation
This table compares Skullcandy and Vuzix Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Vuzix Corporation||$2.97 million||41.57||-$18.05 million||($1.20)||-5.04|
Skullcandy has higher revenue, but lower earnings than Vuzix Corporation. Vuzix Corporation is trading at a lower price-to-earnings ratio than Skullcandy, indicating that it is currently the more affordable of the two stocks.
This table compares Skullcandy and Vuzix Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Skullcandy has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, Vuzix Corporation has a beta of 0.22, suggesting that its share price is 78% less volatile than the S&P 500.
Insider and Institutional Ownership
46.7% of Skullcandy shares are owned by institutional investors. Comparatively, 10.3% of Vuzix Corporation shares are owned by institutional investors. 7.7% of Skullcandy shares are owned by insiders. Comparatively, 22.9% of Vuzix Corporation shares are owned 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.
Skullcandy beats Vuzix Corporation on 6 of the 11 factors compared between the two stocks.
Skullcandy, Inc. creates audio experiences through its Skullcandy and Astro Gaming brands. The Company operates in two segments: Domestic and International. The Domestic segment consists of Skullcandy and Astro Gaming product sales to customers in the United States. The International segment includes Skullcandy product sales to customers in Europe, Asia, Canada Mexico, and all other geographic areas outside the United States that are served by the Company’s International operations. The Company focuses its product offerings in two categories: audio and gaming. The Company primarily operates in the consumer products category in which the Company develops and distributes headphones and other audio products. Astro Gaming creates premium video gaming equipment for professional gamers, leagues, and gaming enthusiasts. Skullcandy brand creates various audio and gaming products.
Receive News & Ratings for Skullcandy Inc Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Skullcandy Inc and related companies with MarketBeat.com's FREE daily email newsletter.