Universal Electronics (UEIC) vs. Control4 Corporation (CTRL) Financial Survey

Universal Electronics (NASDAQ: UEIC) and Control4 Corporation (NASDAQ:CTRL) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, dividends, earnings, institutional ownership and analyst recommendations.

Profitability

This table compares Universal Electronics and Control4 Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Universal Electronics 2.37% 11.97% 6.27%
Control4 Corporation 4.70% 10.77% 8.86%

Analyst Recommendations

This is a summary of current ratings for Universal Electronics and Control4 Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Universal Electronics 0 1 2 0 2.67
Control4 Corporation 0 3 4 0 2.57

Universal Electronics presently has a consensus target price of $75.08, suggesting a potential upside of 29.01%. Control4 Corporation has a consensus target price of $20.00, suggesting a potential downside of 15.75%. Given Universal Electronics’ stronger consensus rating and higher possible upside, research analysts plainly believe Universal Electronics is more favorable than Control4 Corporation.

Institutional & Insider Ownership

91.9% of Universal Electronics shares are held by institutional investors. Comparatively, 75.1% of Control4 Corporation shares are held by institutional investors. 5.8% of Universal Electronics shares are held by insiders. Comparatively, 6.1% of Control4 Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Universal Electronics and Control4 Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Universal Electronics $668.71 million 1.25 $59.62 million $1.08 53.89
Control4 Corporation $224.20 million 2.58 $18.97 million $0.41 57.90

Universal Electronics has higher revenue and earnings than Control4 Corporation. Universal Electronics is trading at a lower price-to-earnings ratio than Control4 Corporation, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Universal Electronics has a beta of 1.65, meaning that its stock price is 65% more volatile than the S&P 500. Comparatively, Control4 Corporation has a beta of -0.6, meaning that its stock price is 160% less volatile than the S&P 500.

Summary

Universal Electronics beats Control4 Corporation on 8 of the 14 factors compared between the two stocks.

About Universal Electronics

Universal Electronics Inc. (UEI) develops control and sensor technology solutions and manufactures a line of pre-programmed and universal remote control products, audio-video (AV) accessories, and intelligent wireless security and automation components. The Company’s offerings include pre-programmed universal infrared (IR) and radio frequency (RF) remote controls that are sold primarily to subscription broadcasting providers, original equipment manufacturers (OEMs), retailers, and private label customers, and integrated circuits, on which its software and universal device control database is embedded, sold primarily to OEMs, subscription broadcasting providers, and private label customers. Its offerings also include software, firmware and technology solutions that enable devices, such as televisions, set-top boxes, stereos, smart phones tablets, gaming controllers and other consumer electronic devices, to wirelessly connect and interact with home networks and interactive services.

About Control4 Corporation

Control4 Corporation (Control4) is a provider of smart home and business solutions. The Company’s smart home and small business solutions provide consumers with the ability to integrate audio, video, lighting, temperature, security, communications, network management and other functionalities into a unified automation solution, customized to match their lifestyles and business needs. Its Control4 solution integrates various third-party devices and systems into a unified solution for mainstream consumers. Through its unified software platform, consumers can interact with their entire automated home without learning multiple interfaces or various remote controls. Its Control4 product line is the Control4 Home Operating System (C4 OS), and the associated application software and software development kits (SDKs). Its products with embedded software and services include controllers, interface devices, lighting products, comfort products, security products and communication products.

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