Critical Comparison: Xenonics (OTCMKTS:XNNHQ) and Universal Electronics (NASDAQ:UEIC)

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Xenonics and Universal Electronics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xenonics	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 45.20%. Given Universal Electronics’ stronger consensus rating and higher probable upside, analysts clearly believe Universal Electronics is more favorable than Xenonics.

Risk & Volatility

Xenonics has a beta of 12.46, suggesting that its share price is 1,146% more volatile than the S&P 500. Comparatively, Universal Electronics has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.

Earnings & Valuation

This table compares Xenonics and Universal Electronics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xenonics	N/A	N/A	N/A	N/A	N/A
Universal Electronics	$368.29 million	0.14	-$18.60 million	($1.50)	-2.64

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

Institutional & Insider Ownership

79.4% of Universal Electronics shares are held by institutional investors. 8.9% of Xenonics shares are held by insiders. Comparatively, 17.1% 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.

Profitability

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

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

Summary

Universal Electronics beats Xenonics on 7 of the 9 factors compared between the two stocks.

About Xenonics

Xenonics Holdings, Inc. designs, manufactures, and markets portable illumination products and low light viewing systems (night vision) in the United States. It offers NightHunter ONE, a lightweight illumination system, which can be used on vehicles, boats, and helicopters; NightHunter EXT, a lightweight illumination system for mounting on heavy guns and for use on stationary platforms, or vehicles, boats, or helicopters; and NightHunter 3 for handheld use or mounting on light, medium, and heavy machine guns or vehicles. The company also provides SuperVision that allows user to see in the dark with clarity than conventional night vision; SuperVision Video Out to connect the video signal to a computer recording device or monitor for surveillance; SuperVision Tactical Packages for law enforcement professionals; and SuperVision Vehicle Patrol Packages to make law enforcement patrol operations safer. It markets its illumination products under the NightHunter brand and night vision products under the SuperVision brand. The company serves military forces; the U.S. Department of Homeland Security; law enforcement, fire, search, and rescue; and commercial markets. Xenonics Holdings, Inc. was founded in 1996 and is headquartered in Carlsbad, California.

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.