Contrasting Universal Electronics (NASDAQ:UEIC) & Beazer Homes USA (NYSE:BZH)

Beazer Homes USA (NYSE:BZH) and Universal Electronics (NASDAQ:UEIC) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.

Earnings & Valuation

This table compares Beazer Homes USA and Universal Electronics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Beazer Homes USA	$2.08 billion	0.43	$45.59 million	($0.30)	-110.80
Universal Electronics	$330.57 million	0.18	-$18.60 million	($1.16)	-3.91

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

Risk & Volatility

Beazer Homes USA has a beta of 2.17, suggesting that its stock price is 117% more volatile than the S&P 500. Comparatively, Universal Electronics has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.

Insider and Institutional Ownership

85.7% of Beazer Homes USA shares are owned by institutional investors. Comparatively, 79.3% of Universal Electronics shares are owned by institutional investors. 8.0% of Beazer Homes USA shares are owned by insiders. Comparatively, 17.1% of Universal Electronics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Beazer Homes USA and Universal Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Beazer Homes USA	-0.37%	0.18%	0.08%
Universal Electronics	-4.57%	2.70%	1.44%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Beazer Homes USA and Universal Electronics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beazer Homes USA	1	2	0	1	2.25
Universal Electronics	1	2	0	0	1.67

Universal Electronics has a consensus target price of $4.25, suggesting a potential downside of 6.39%. Given Universal Electronics’ higher possible upside, analysts plainly believe Universal Electronics is more favorable than Beazer Homes USA.

Summary

Beazer Homes USA beats Universal Electronics on 9 of the 14 factors compared between the two stocks.

About Beazer Homes USA

Beazer Homes USA, Inc. operates as a homebuilder in the United States. It designs, constructs, and sells single-family and multi-family homes under the Beazer Homes, Gatherings, and Choice Plans names. The company also sells its homes through commissioned new home sales counselors and independent brokers in Arizona, California, Nevada, Texas, Indiana, Delaware, Maryland, Tennessee, Virginia, Florida, Georgia, North Carolina, and South Carolina. Beazer Homes USA, Inc. was founded in 1985 and is headquartered in Atlanta, Georgia.

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.