Comparing Universal Electronics (UEIC) and Sonos (SONO)

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

Valuation & Earnings

This table compares Universal Electronics and Sonos’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Universal Electronics $695.79 million 0.68 -$10.32 million $2.81 12.25
Sonos $992.52 million 1.35 -$14.21 million N/A N/A

Universal Electronics has higher earnings, but lower revenue than Sonos.

Profitability

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

Net Margins Return on Equity Return on Assets
Universal Electronics 1.02% 15.77% 7.11%
Sonos N/A N/A N/A

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Universal Electronics and Sonos, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Universal Electronics 0 3 0 0 2.00
Sonos 0 3 3 0 2.50

Universal Electronics presently has a consensus target price of $52.00, suggesting a potential upside of 51.12%. Sonos has a consensus target price of $22.83, suggesting a potential upside of 71.04%. Given Sonos’ stronger consensus rating and higher probable upside, analysts plainly believe Sonos is more favorable than Universal Electronics.

Summary

Sonos beats Universal Electronics on 5 of the 9 factors compared between the two stocks.

Universal Electronics Company Profile

Universal Electronics Inc. develops and manufactures pre-programmed and universal control products, audio-video (AV) accessories, software and intelligent wireless security products, and sensing and automation components for home entertainment and automation systems. The company offers universal infrared and radio frequency (RF) remote controls; integrated circuits on which its software and universal device control database is embedded; and software, firmware, and technology solutions that enable devices, including televisions, set-top boxes, audio systems, smartphones, tablets, game controllers, and other consumer electronic devices to wirelessly connect and interact with home networks, as well as interactive services to control and deliver digital entertainment and information. It also provides proprietary and standards-based RF sensors designed for residential security, safety, and automation applications; AV accessories; and wall-mount and handheld thermostat controllers, and connected accessories for intelligent energy management systems. In addition, the company licenses intellectual property comprising its patented technologies, trademarks, and database of home connectivity software and control codes. It serves cable and satellite television service providers, and original equipment manufacturers; software development companies; subscription broadcasting providers; hospitality system integrators; and retail, private label, pro-security installation, and personal computing companies. The company sells its products directly, as well as through distributors in the United States, Europe, Australia, New Zealand, South Africa, the Middle East, Mexico, Latin America, the People's Republic of China, various countries in Asia, and internationally under the One For All and Nevo brands. Universal Electronics Inc. was founded in 1986 and is headquartered in Santa Ana, California.

Sonos Company Profile

Sonos, Inc., through its subsidiaries, designs, develops, manufactures, and sells multi-room audio products primarily for use in private residences in the United States and internationally. It offers wireless speakers, home theater speakers, and components. The company offers its products through third-party retail stores and e-commerce retailers, as well as through its sonos.com Website. The company was formerly known as Rincon Audio, Inc. and changed its name to Sonos, Inc. in May 2004. Sonos, Inc. was founded in 2002 and is headquartered in Santa Barbara, California.

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