Financial analysis: Digital Ally (NASDAQ:DGLY) and Ubiquiti (NASDAQ:UI)


Digital Ally (NASDAQ:DGLY – Get Rating) and Ubiquiti (NASDAQ:UI – Get Rating) are both industrial products companies, but which is the better stock? We’ll compare the two companies based on institutional ownership strength, risk, valuation, earnings, analyst recommendations, profitability and dividends.

Profitability

This table compares the net margins, return on equity and return on assets of Digital Ally and Ubiquiti.

Net margins Return on equity return on assets
digital ally 193.66% 56.99% 34.37%
Ubiquitous 29.21% -57,441.32% 58.25%

Risk and Volatility

Digital Ally has a beta of 0.67, suggesting its stock price is 33% less volatile than the S&P 500. Comparatively, Ubiquiti has a beta of 1.44, suggesting its stock price is 44% more volatile than the S&P 500.

Analyst Notes

This is a summary of the current ratings and target prices for Digital Ally and Ubiquiti, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
digital ally 0 0 0 0 N / A
Ubiquitous 0 0 0 0 N / A

Valuation and benefits

This table compares the revenue, earnings per share (EPS) and valuation of Digital Ally and Ubiquiti.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
digital ally $10.52 million 5.56 -$2.63 million $0.54 2.06
Ubiquitous $1.90 billion 9.49 $616.58 million $8.55 34.24

Ubiquiti has higher revenue and profit than Digital Ally. Digital Ally trades at a lower price-to-earnings ratio than Ubiquiti, indicating that it is currently the more affordable of the two stocks.

Institutional and insider ownership

10.6% of Digital Ally’s shares are held by institutional investors. Comparatively, 5.9% of Ubiquiti’s shares are held by institutional investors. 6.9% of Digital Ally’s stock is held by company insiders. By comparison, 90.1% of Ubiquiti’s shares are held by company insiders. Strong institutional ownership indicates that hedge funds, large fund managers, and endowments believe a company will outperform the market over the long term.

Summary

Ubiquiti beats Digital Ally on 8 of the 11 factors compared between the two stocks.

Digital Ally Company Profile (Get an evaluation)

Digital Ally, Inc. is engaged in the design, manufacture and sale of digital audio, video recording and speed detection devices. Its products include dash cam systems, body-worn cameras, car and vehicle mirror video systems and portable surveillance systems. The company was founded on December 13, 2000 and is based in Lenexa, KS.

Ubiquiti Company Profile (Get an evaluation)

Ubiquiti Inc. develops networking technology for service providers, enterprises and consumers. It develops technology platforms for distributed high-capacity Internet access, unified information technology and consumer electronics for business, home and personal use. Its service provider product platforms offer carrier-grade network infrastructure for fixed wireless broadband, wireless backhaul systems and routing; and enterprise product platforms provide wireless LAN infrastructure, video surveillance products, switching and routing solutions, security gateways and other WLAN products, as well as consumer products under the brand Ubiquiti Labs. The company also provides technology platforms, such as airMAX, which include proprietary protocols containing technologies to minimize signal noise; EdgeMAX, a software and system routing platform; airFiber, a point-to-point radio system; and UFiber GPON, an off-the-shelf fiber networking technology for creating high-speed fiber Internet networks. Additionally, it offers UniFi -Enterprise WLAN, an enterprise Wi-Fi system that allows onsite and remote management via the cloud; UniFi Protect, a video surveillance system, which provides statistical reports and advanced analysis; UniFi switch that delivers the performance, switching, and power of Ethernet support for enterprise networks; UniFi Console, an enterprise-class router and security gateway appliance; and UniFi Access, a door access system. In addition, offers base stations, radios, backhaul equipment and customer premises equipment; integrated radio products; antennae; and Power over Ethernet mounting brackets, cables and adapters. It serves its customers through a network of approximately 100 distributors, online retailers and directly to customers worldwide. The company was formerly known as Ubiquiti Networks, Inc. and changed its name to Ubiquiti Inc. in August 2019. Ubiquiti Inc. was incorporated in 2003 and is headquartered in New York, New York.



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Sarah J. Greer