Reviewing Universal Electronics (NASDAQ:UEIC) & Crown Crafts (NASDAQ:CRWS)

Crown Crafts (NASDAQ:CRWS) and Universal Electronics (NASDAQ:UEIC) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.

Institutional & Insider Ownership

30.2% of Crown Crafts shares are owned by institutional investors. Comparatively, 79.3% of Universal Electronics shares are owned by institutional investors. 12.3% of Crown Crafts shares are owned by insiders. Comparatively, 17.1% of Universal Electronics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

Crown Crafts has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, Universal Electronics has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.

Profitability

This table compares Crown Crafts and Universal Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Crown Crafts	5.99%	12.79%	6.84%
Universal Electronics	-4.57%	2.70%	1.44%

Earnings and Valuation

This table compares Crown Crafts 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
Crown Crafts	$82.27 million	0.36	$1.84 million	$0.47	5.79
Universal Electronics	$368.29 million	0.16	-$18.60 million	($1.16)	-4.06

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

Analyst Recommendations

This is a summary of current ratings for Crown Crafts and Universal Electronics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Crown Crafts	0	1	0	0	2.00
Universal Electronics	1	2	0	0	1.67

Universal Electronics has a consensus target price of $4.25, suggesting a potential downside of 9.77%. Given Universal Electronics’ higher probable upside, analysts clearly believe Universal Electronics is more favorable than Crown Crafts.

Summary

Crown Crafts beats Universal Electronics on 8 of the 13 factors compared between the two stocks.

About Crown Crafts

Crown Crafts, Inc., through its subsidiaries, operates in the consumer products industry in the United States and internationally. It provides infant, toddler, and juvenile products, including infant and toddler beddings; blankets and swaddle blankets; dolls and plush toys; nursery and toddler accessories; room décors; reusable and disposable bibs; burp cloths; hooded bath towels and washcloths; reusable and disposable placemats, and floor mats; disposable toilet seat covers and changing mats; developmental toys; feeding and care goods; and other infant, toddler, and juvenile soft goods. The company sells its products primarily to mass merchants, large chain stores, mid-tier retailers, juvenile specialty stores, value channel stores, grocery and drug stores, restaurants, internet accounts, wholesale clubs and internet-based retailers through a network of sales force and independent commissioned sales representatives. Crown Crafts, Inc. was incorporated in 1957 and is headquartered in Gonzales, Louisiana.

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.