Contrasting Universal Electronics (NASDAQ:UEIC) & Crown Crafts (NASDAQ:CRWS)

Universal Electronics (NASDAQ:UEIC) and Crown Crafts (NASDAQ:CRWS) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.

Valuation & Earnings

This table compares Universal Electronics and Crown Crafts”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Electronics	$330.57 million	0.19	-$18.60 million	($1.16)	-4.12
Crown Crafts	$83.55 million	0.34	$1.84 million	$0.47	5.64

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

Volatility & Risk

Universal Electronics has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, Crown Crafts has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Universal Electronics and Crown Crafts, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Electronics	1	2	0	0	1.67
Crown Crafts	0	1	0	0	2.00

Universal Electronics presently has a consensus target price of $4.25, suggesting a potential downside of 11.09%. Given Universal Electronics’ higher probable upside, analysts plainly believe Universal Electronics is more favorable than Crown Crafts.

Institutional & Insider Ownership

79.3% of Universal Electronics shares are held by institutional investors. Comparatively, 30.2% of Crown Crafts shares are held by institutional investors. 17.1% of Universal Electronics shares are held by company insiders. Comparatively, 12.3% of Crown Crafts shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Universal Electronics	-4.57%	2.70%	1.44%
Crown Crafts	5.99%	12.79%	6.84%

Summary

Crown Crafts beats Universal Electronics on 8 of the 13 factors compared between the two stocks.

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.

About Crown Crafts

Crown Crafts, Inc., through its subsidiaries, operates in the consumer products industry in the United States and internationally. It provides infant, toddler, and juvenile products, including infant and toddler beddings; blankets and swaddle blankets; dolls and plush toys; nursery and toddler accessories; room décors; reusable and disposable bibs; burp cloths; hooded bath towels and washcloths; reusable and disposable placemats, and floor mats; disposable toilet seat covers and changing mats; developmental toys; feeding and care goods; and other infant, toddler, and juvenile soft goods. The company sells its products primarily to mass merchants, large chain stores, mid-tier retailers, juvenile specialty stores, value channel stores, grocery and drug stores, restaurants, internet accounts, wholesale clubs and internet-based retailers through a network of sales force and independent commissioned sales representatives. Crown Crafts, Inc. was incorporated in 1957 and is headquartered in Gonzales, Louisiana.