Universal Electronics (NASDAQ:UEIC) versus Casio Computer (OTCMKTS:CSIOY) Critical Contrast

Casio Computer (OTCMKTS:CSIOY) and Universal Electronics (NASDAQ:UEIC) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Insider & Institutional Ownership

79.4% of Universal Electronics shares are held by institutional investors. 9.4% of Universal Electronics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Casio Computer and Universal Electronics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Casio Computer	$1.72 billion	1.23	$53.22 million	$5.61	15.90
Universal Electronics	$368.29 million	0.15	-$18.60 million	($1.40)	-3.11

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Casio Computer and Universal Electronics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Casio Computer	0	0	0	0	0.00
Universal Electronics	1	2	0	0	1.67

Universal Electronics has a consensus price target of $5.75, indicating a potential upside of 31.88%. Given Universal Electronics’ stronger consensus rating and higher possible upside, analysts clearly believe Universal Electronics is more favorable than Casio Computer.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Casio Computer	6.99%	6.32%	4.22%
Universal Electronics	-5.05%	-0.47%	-0.24%

Volatility and Risk

Casio Computer has a beta of 0.18, indicating that its share price is 82% less volatile than the S&P 500. Comparatively, Universal Electronics has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500.

Summary

Casio Computer beats Universal Electronics on 8 of the 13 factors compared between the two stocks.

About Casio Computer

Casio Computer Co.,Ltd. develops, produces, and sells consumer, system equipment, and other products. The company operates in Timepieces, Consumer, System Equipment, and Other segments. It offers timepieces, electronic dictionaries, calculators, label printers, electronic musical instruments, handheld terminals, cash registers, management support systems, data projectors, formed parts, and molds products. The company was incorporated in 1946 and is headquartered in Tokyo, Japan.

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.