Reviewing ESS Tech (NYSE:GWH) & Universal Electronics (NASDAQ:UEIC)

ESS Tech (NYSE:GWH) and Universal Electronics (NASDAQ:UEIC) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ESS Tech	$1.58 million	18.97	-$63.44 million	($4.33)	-0.26
Universal Electronics	$368.29 million	0.14	-$18.60 million	($1.40)	-3.00

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for ESS Tech and Universal Electronics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ESS Tech	1	1	1	0	2.00
Universal Electronics	1	2	0	0	1.67

ESS Tech currently has a consensus price target of $2.25, suggesting a potential upside of 103.62%. Universal Electronics has a consensus price target of $5.75, suggesting a potential upside of 36.90%. Given ESS Tech’s stronger consensus rating and higher probable upside, analysts clearly believe ESS Tech is more favorable than Universal Electronics.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ESS Tech	-1,045.28%	-1,141.31%	-140.58%
Universal Electronics	-5.05%	-0.47%	-0.24%

Institutional & Insider Ownership

46.8% of ESS Tech shares are held by institutional investors. Comparatively, 79.4% of Universal Electronics shares are held by institutional investors. 1.7% of ESS Tech shares are held by company insiders. Comparatively, 17.1% of Universal Electronics shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

ESS Tech has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500. Comparatively, Universal Electronics has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500.

Summary

Universal Electronics beats ESS Tech on 8 of the 14 factors compared between the two stocks.

About ESS Tech

ESS Tech, Inc., an energy storage company, designs and produces iron flow batteries for commercial and utility-scale energy storage applications worldwide. It offers energy storage products, which include Energy Warehouse, a behind-the-meter solution; and Energy Center, a front-of-the-meter solution. The company was founded in 2011 and is headquartered in Wilsonville, Oregon.

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.