Analyzing Universal Electronics (NASDAQ:UEIC) and Skyworth Group (OTCMKTS:SWDHF)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Skyworth Group	N/A	N/A	N/A
Universal Electronics	-11.19%	-19.41%	-9.77%

Earnings & Valuation

This table compares Skyworth Group and Universal Electronics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Skyworth Group	N/A	N/A	N/A	$0.54	0.58
Universal Electronics	$387.04 million	0.29	-$98.24 million	($3.53)	-2.48

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Skyworth Group and Universal Electronics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Skyworth Group	0	0	0	0	N/A
Universal Electronics	0	2	0	0	2.00

Universal Electronics has a consensus target price of $13.00, indicating a potential upside of 48.40%. Given Universal Electronics’ higher possible upside, analysts plainly believe Universal Electronics is more favorable than Skyworth Group.

Institutional and Insider Ownership

23.1% of Skyworth Group shares are held by institutional investors. Comparatively, 79.3% of Universal Electronics shares are held by institutional investors. 9.4% of Universal Electronics shares are held by company 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

Skyworth Group beats Universal Electronics on 5 of the 9 factors compared between the two stocks.

About Skyworth Group

Skyworth Group Limited, an investment holding company, researches and develops, manufactures, sells, trades, and exports consumer electronic products. It operates through Smart Household Appliances Business, Smart Systems Technology Business, and New Energy Business segments. The company offers smart TV systems; home access systems, such as digital set-top boxes; smart white appliances, including air conditioners, refrigerators, washing machines, kitchen appliances, tablet computer, and other products; LCD modules; automotive electronic systems; photovoltaic products; lighting products; security systems; and other electronic products, as well as internet value-added services. It is also involved in the property development and holding; trading of consumer electronic products; and sale and installation of photovoltaic power station for residential and commercial uses, as well as financing and treasury management activities. In addition, the company engages in the maintenance and repair of home appliances; construction development business; financial leasing; and macro logistics services, as well as operates industrial parks. It has operations in the People's Republic of China, rest of Asia, Europe, the Middle East, the Americas, Oceania, and Africa. The company was formerly known as Skyworth Digital Holdings Limited and changed its name to Skyworth Group Limited in June 2019. Skyworth Group Limited was founded in 1988 and is headquartered in Quarry Bay, Hong Kong.

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.