Universal Electronics (NASDAQ: UEIC) and Skullcandy (NASDAQ:SKUL) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitabiliy, earnings, risk and valuation.

Risk & Volatility

Universal Electronics has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500. Comparatively, Skullcandy has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.

Valuation & Earnings

This table compares Universal Electronics and Skullcandy’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Universal Electronics $662.12 million 1.46 $59.62 million $1.21 55.33
Skullcandy N/A N/A N/A $0.07 90.58

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Universal Electronics and Skullcandy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Universal Electronics 0 1 4 0 2.80
Skullcandy 0 1 1 0 2.50

Universal Electronics presently has a consensus price target of $77.81, suggesting a potential upside of 16.22%. Skullcandy has a consensus price target of $6.35, suggesting a potential upside of 0.16%. Given Universal Electronics’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Universal Electronics is more favorable than Skullcandy.

Institutional & Insider Ownership

93.1% of Universal Electronics shares are held by institutional investors. Comparatively, 46.7% of Skullcandy shares are held by institutional investors. 5.8% of Universal Electronics shares are held by insiders. Comparatively, 7.7% of Skullcandy 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Universal Electronics 2.68% 14.40% 7.73%
Skullcandy -2.75% -4.04% -3.32%

Summary

Universal Electronics beats Skullcandy on 10 of the 11 factors compared between the two stocks.

Universal Electronics Company Profile

Universal Electronics Inc. (UEI) develops control and sensor technology solutions and manufactures a line of pre-programmed and universal remote control products, audio-video (AV) accessories, and intelligent wireless security and automation components. The Company’s offerings include pre-programmed universal infrared (IR) and radio frequency (RF) remote controls that are sold primarily to subscription broadcasting providers, original equipment manufacturers (OEMs), retailers, and private label customers, and integrated circuits, on which its software and universal device control database is embedded, sold primarily to OEMs, subscription broadcasting providers, and private label customers. Its offerings also include software, firmware and technology solutions that enable devices, such as televisions, set-top boxes, stereos, smart phones tablets, gaming controllers and other consumer electronic devices, to wirelessly connect and interact with home networks and interactive services.

Skullcandy Company Profile

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.

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