Head to Head Review: Universal Electronics (NASDAQ:UEIC) vs. Xenonics (OTCMKTS:XNNHQ)

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

Volatility and Risk

Universal Electronics has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500. Comparatively, Xenonics has a beta of 13.25, indicating that its share price is 1,225% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Electronics	$368.29 million	0.14	-$18.60 million	($1.50)	-2.68
Xenonics	N/A	N/A	N/A	N/A	N/A

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

Insider and Institutional Ownership

79.4% of Universal Electronics shares are held by institutional investors. 17.1% of Universal Electronics shares are held by company insiders. Comparatively, 8.9% of Xenonics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Universal Electronics and Xenonics, as provided by MarketBeat.com.

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

Universal Electronics presently has a consensus target price of $5.75, indicating a potential upside of 43.03%. Given Universal Electronics’ stronger consensus rating and higher probable upside, analysts plainly believe Universal Electronics is more favorable than Xenonics.

Summary

Universal Electronics beats Xenonics on 7 of the 9 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 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.