Universal (NYSE:UVV) and Electronic Cigarettes International Group (OTCMKTS:ECIG) Head-To-Head Review

Universal (NYSE:UVV) and Electronic Cigarettes International Group (OTCMKTS:ECIG) are both small-cap consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Institutional & Insider Ownership

81.0% of Universal shares are held by institutional investors. 1.9% of Universal shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Universal and Electronic Cigarettes International Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal	0	1	0	0	2.00
Electronic Cigarettes International Group	0	0	0	0	0.00

Given Electronic Cigarettes International Group’s higher probable upside, analysts clearly believe Electronic Cigarettes International Group is more favorable than Universal.

Earnings and Valuation

This table compares Universal and Electronic Cigarettes International Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal	$2.95 billion	0.47	$95.05 million	$4.11	13.48
Electronic Cigarettes International Group	N/A	N/A	N/A	N/A	N/A

Universal has higher revenue and earnings than Electronic Cigarettes International Group.

Profitability

This table compares Universal and Electronic Cigarettes International Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Universal	3.51%	8.46%	4.10%
Electronic Cigarettes International Group	N/A	N/A	N/A

Summary

Universal beats Electronic Cigarettes International Group on 7 of the 8 factors compared between the two stocks.

About Universal

Universal Corporation processes and supplies leaf tobacco and plant-based ingredients worldwide. The company operates through two segments, Tobacco Operations; and Ingredients Operations. It is involved in the procuring, financing, processing, packing, storing, and shipping leaf tobacco for sale to manufacturers of consumer tobacco products. The company contracts, purchases, processes, and sells flue-cured, burley, and oriental tobaccos that are primarily used in the manufacture of cigarettes; and dark air-cured tobaccos principally used in the manufacture of cigars, natural wrapped cigars and cigarillos, smokeless, and pipe tobacco products. It also provides value-added services, including blending, chemical, and physical testing of tobacco; service cutting for various manufacturers; manufacturing reconstituted leaf tobacco; just-in-time inventory management services; electronic nicotine delivery systems; and smoke testing services for customers. In addition, the company offers testing services for crop protection agents and tobacco constituents in seed, leaf, and finished products, including e-cigarette liquids and vapors; and analytical services that include chemical compound testing in finished tobacco products and mainstream smoke. Further, it provides a various value-added manufacturing processes to produce specialty vegetable and fruit-based ingredients, as well as botanical extracts and flavorings for human and pet food markets; and recycles waste materials from tobacco production. Universal Corporation was founded in 1886 and is headquartered in Richmond, Virginia.

About Electronic Cigarettes International Group

Electronic Cigarettes International Group Ltd. engages in the marketing and distribution of vaping products and electronic cigarettes. Its brand portfolio include VAPESTICK, FIN, Victory, GreenStix, VIP, E-CIG, and Pro Vapor. The company was founded by Marc Hardgrove on May 19, 2004 and is headquartered in Golden, CO.