XCHG (NASDAQ:XCH) and Universal Electronics (NASDAQ:UEIC) Critical Review

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

Risk & Volatility

XCHG has a beta of -0.86, suggesting that its share price is 186% less volatile than the S&P 500. Comparatively, Universal Electronics has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XCHG	1	1	0	0	1.50
Universal Electronics	1	2	0	0	1.67

Universal Electronics has a consensus price target of $5.75, suggesting a potential upside of 35.29%. Given Universal Electronics’ stronger consensus rating and higher possible upside, analysts plainly believe Universal Electronics is more favorable than XCHG.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XCHG	$42.20 million	1.45	-$11.94 million	($0.08)	-12.88
Universal Electronics	$391.00 million	0.15	-$24.03 million	($1.67)	-2.54

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
XCHG	N/A	N/A	N/A
Universal Electronics	-5.64%	-0.68%	-0.33%

Institutional and Insider Ownership

79.3% of Universal Electronics shares are owned by institutional investors. 9.4% of Universal Electronics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Universal Electronics beats XCHG on 7 of the 13 factors compared between the two stocks.

About XCHG

XCHG Limited, branded as XCharge, is a company whose subsidiaries design, manufacture, and sell electric vehicle (EV) charging solutions under the X-Charge name in Europe, China, the United States, and other international markets. The company focuses on DC fast-charging infrastructure, including its C6 and C7 series chargers and Net Zero battery-integrated fast-charging systems, and also provides related software upgrades and hardware maintenance services for EV manufacturers, energy companies, and charge point operators. Founded in 2015, XCHG positions itself as a global provider of integrated EV charging solutions that combine high-power charging with smart energy management.

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.