Nokia (NYSE:NOK) vs. Ubiquiti (NYSE:UI) Head to Head Contrast

Nokia (NYSE:NOK) and Ubiquiti (NYSE:UI) are both large-cap technology companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, profitability, earnings, institutional ownership and dividends.

Dividends

Nokia pays an annual dividend of $0.09 per share and has a dividend yield of 1.1%. Ubiquiti pays an annual dividend of $4.00 per share and has a dividend yield of 0.6%. Nokia pays out 56.2% of its earnings in the form of a dividend. Ubiquiti pays out 22.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Nokia and Ubiquiti, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nokia	2	5	16	0	2.61
Ubiquiti	1	2	1	0	2.00

Nokia currently has a consensus price target of $13.41, suggesting a potential upside of 66.45%. Ubiquiti has a consensus price target of $758.50, suggesting a potential upside of 13.42%. Given Nokia’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Nokia is more favorable than Ubiquiti.

Earnings & Valuation

This table compares Nokia and Ubiquiti”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nokia	$22.50 billion	2.06	$736.54 million	$0.16	50.34
Ubiquiti	$3.27 billion	12.35	$960.30 million	$17.71	37.76

Ubiquiti has lower revenue, but higher earnings than Nokia. Ubiquiti is trading at a lower price-to-earnings ratio than Nokia, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Nokia and Ubiquiti’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nokia	3.80%	10.48%	5.94%
Ubiquiti	30.08%	80.29%	53.47%

Risk and Volatility

Nokia has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, Ubiquiti has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500.

Institutional & Insider Ownership

5.3% of Nokia shares are owned by institutional investors. Comparatively, 4.0% of Ubiquiti shares are owned by institutional investors. 93.0% of Ubiquiti shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Ubiquiti beats Nokia on 9 of the 16 factors compared between the two stocks.

About Nokia

Nokia is a Finland-based technology company focused on communications networks and related services. Its offerings include mobile and fixed network infrastructure, IP and optical networking, cloud and network software, and private wireless solutions for businesses and public-sector organizations. The company serves communications service providers, enterprises, governments and other customers around the world. It also develops and licenses technology and intellectual property, including through its patent-licensing business.

About Ubiquiti

Ubiquiti Inc. develops and sells networking technology for businesses, service providers and consumers. Its products include wireless access points, routers, switches and broadband wireless equipment, along with network management software and security devices such as cameras and access control systems. The company markets products under brands including UniFi, airMAX, EdgeMAX and AmpliFi. Its UniFi platform brings together networking, video surveillance and access control products with centralized management tools.