Comparing Universal Electronics (NASDAQ:UEIC) & Trans-Lux (OTCMKTS:TNLX)

Trans-Lux (OTCMKTS:TNLX) and Universal Electronics (NASDAQ:UEIC) 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 institutional ownership, earnings, profitability, analyst recommendations, dividends, valuation and risk.

Institutional & Insider Ownership

11.9% of Trans-Lux shares are owned by institutional investors. Comparatively, 79.3% of Universal Electronics shares are owned by institutional investors. 58.7% of Trans-Lux shares are owned by company insiders. Comparatively, 17.1% of Universal Electronics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Trans-Lux has a beta of -1.88, suggesting that its share price is 288% less volatile than the S&P 500. Comparatively, Universal Electronics has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trans-Lux	$12.86 million	0.01	-$3.48 million	($0.25)	-0.04
Universal Electronics	$368.29 million	0.15	-$18.60 million	($1.50)	-3.01

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

Profitability

This table compares Trans-Lux and Universal Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trans-Lux	N/A	N/A	N/A
Universal Electronics	-5.54%	0.41%	0.21%

Analyst Recommendations

This is a summary of recent ratings for Trans-Lux and Universal Electronics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trans-Lux	0	0	0	0	0.00
Universal Electronics	1	2	0	0	1.67

Universal Electronics has a consensus target price of $5.75, indicating a potential upside of 27.49%. Given Universal Electronics’ stronger consensus rating and higher possible upside, analysts plainly believe Universal Electronics is more favorable than Trans-Lux.

Summary

Universal Electronics beats Trans-Lux on 8 of the 13 factors compared between the two stocks.

About Trans-Lux

Trans-Lux Corporation engages in the design and manufacture of digital display solutions and fixed digit scoreboards. It operates in two segments, Digital Product Sales; and Digital Product Lease and Maintenance. The Digital Product Sales segment sells indoor and outdoor digital product signage products. The Digital Product Lease and Maintenance segment is involved in the lease and maintenance of indoor and outdoor digital product signage. The company offers LED display systems for use by sports arenas and stadiums; financial institutions, including brokerage firms, banks, energy companies, insurance companies, and mutual fund companies; educational institutions; outdoor advertising companies; corporate and government communication centers; retail outlets; casinos, racetracks and other gaming establishments; airports, train stations, bus terminals, and other transportation facilities; movie theatres; and health maintenance organizations, as well as in various other applications. It also provides TLVision, which consists of full-color video products for use in posting alphanumeric data and displaying of full HD video; and turnkey installation and support services. The company markets its products through direct sales representatives, and a network of independent dealers and distributors in the United States and Canada; and internal salespeople and independent distributors in the rest of North America, Europe, the Middle East, South America, Africa, the Far East, and Australia. Trans-Lux Corporation was incorporated in 1920 and is headquartered in New York, New York. Trans-Lux Corporation operates as a subsidiary of Unilumin North America Inc.

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.