Head-To-Head Review: United Internet (OTCMKTS:UDIRF) versus Uber Technologies (NYSE:UBER)

Uber Technologies (NYSE:UBER) and United Internet (OTCMKTS:UDIRF) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, institutional ownership, valuation and profitability.

Institutional and Insider Ownership

80.2% of Uber Technologies shares are owned by institutional investors. 3.8% of Uber Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Uber Technologies and United Internet”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Uber Technologies	$52.02 billion	2.91	$10.05 billion	$4.01	18.53
United Internet	$6.85 billion	0.77	$114.57 million	($0.34)	-80.40

Uber Technologies has higher revenue and earnings than United Internet. United Internet is trading at a lower price-to-earnings ratio than Uber Technologies, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations for Uber Technologies and United Internet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Uber Technologies	3	6	29	1	2.72
United Internet	0	0	2	0	3.00

Uber Technologies presently has a consensus target price of $104.18, indicating a potential upside of 40.18%. Given Uber Technologies’ higher possible upside, equities analysts clearly believe Uber Technologies is more favorable than United Internet.

Profitability

This table compares Uber Technologies and United Internet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Uber Technologies	15.91%	41.40%	18.21%
United Internet	N/A	N/A	N/A

Volatility and Risk

Uber Technologies has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500. Comparatively, United Internet has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500.

Summary

Uber Technologies beats United Internet on 14 of the 15 factors compared between the two stocks.

About Uber Technologies

Uber Technologies, Inc. develops and operates proprietary technology applications in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia excluding China and Southeast Asia. It operates through three segments: Mobility, Delivery, and Freight. The Mobility segment connects consumers with a range of transportation modalities, such as ridesharing, carsharing, micromobility, rentals, public transit, taxis, and other modalities; and offers riders in a variety of vehicle types, as well as financial partnerships products and advertising services. The Delivery segment allows to search for and discover restaurants to grocery, alcohol, convenience, and other retails; order a meal or other items; and Uber direct, a white-label Delivery-as-a-Service for retailers and restaurants, as well as advertising. The Freight segment manages transportation and logistics network, which connects shippers and carriers in digital marketplace including carriers upfronts, pricing, and shipment booking; and provides on-demand platform to automate logistics end-to-end transactions for small-and medium-sized business to global enterprises. The company was formerly known as Ubercab, Inc. and changed its name to Uber Technologies, Inc. in February 2011. Uber Technologies, Inc. was founded in 2009 and is headquartered in San Francisco, California.

About United Internet

United Internet AG, through its subsidiaries, operates as an Internet service provider worldwide. The company operates through Consumer Access, Business Access, Consumer Applications, and Business Applications segments. It offers landline-based broadband and mobile internet products, including home networks, online storage, telephony, and IPTV for private users; and telecommunication products ranging from fiber-optic direct connections to tailored ICT solutions, which include voice, data, and network solutions, as well as infrastructure services to national and international carriers and ISPs. The company also provides applications and services for home users, such as personal information management applications comprising email, to-do lists, appointments, and addresses; and online cloud storage, as well as domains and website solutions. In addition, it provides business applications for freelancers and small to medium enterprises, such as domains, websites, web hosting, servers, cloud solutions, e-shops, group work, online cloud storage, and office software. It offers its access products through the yourfone, smartmobile.de, 1&1, and 1&1 Versatel brands; and applications through GMX, mail.com, WEB.DE, home.pl, Arsys, STRATO, IONOS, Fasthosts, we22, InterNetX, united-domains, and World4You brand names. In addition, the company offers customers professional services in the fields of active domain management; performance-based advertising and sales services under the Sedo brand name; online advertising services under the United Internet Media brand name; and white-label website builder services under the we22 brand, as well as sells IT hardware. The company was incorporated in 1988 and is headquartered in Montabaur, Germany.