Financial analysis of Ubiquiti (UI) and its competitors


Ubiquiti (NASDAQ:UI – Get Rating) is one of 65 public companies in the “radio and television communications equipment” sector, but how does it differ from its competitors? We will compare Ubiquiti to similar companies based on earnings strength, analyst recommendations, dividends, risk, profitability, institutional ownership and valuation.

Benefits and evaluation

This table compares the revenue, earnings per share and valuation of Ubiquiti and its competitors.

Gross revenue Net revenue Price/earnings ratio
Ubiquitous $1.90 billion $616.58 million 33.88
Ubiquiti competitors $3.50 billion $435.41 million 10:40 p.m.

Ubiquiti’s competitors have higher revenues, but lower revenues than Ubiquiti. Ubiquiti trades at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Ubiquiti and its competitors, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Ubiquitous 0 0 0 0 N / A
Ubiquiti competitors 445 2003 2725 133 2.48

As a group, the “radio and television communication equipment” companies have an upside potential of 49.01%. Since Ubiquiti’s competitors have higher upside potential, analysts clearly believe that Ubiquiti has less favorable growth aspects than its competitors.

Profitability

This table compares the net margins, return on equity and return on assets of Ubiquiti and its competitors.

Net margins Return on equity return on assets
Ubiquitous 29.21% -57,441.32% 58.25%
Ubiquiti competitors -169.02% -3,414.58% 0.68%

Insider and Institutional Ownership

5.9% of Ubiquiti shares are held by institutional investors. In comparison, 45.5% of the shares of all the “Radio & TV communication equipment” companies are held by institutional investors. 90.1% of Ubiquiti shares are held by insiders. Comparatively, 19.7% of the shares of all the “Radio & TV communication equipment” companies are held by insiders. Strong institutional ownership indicates that endowments, hedge funds, and large fund managers believe a stock is poised for long-term growth.

Volatility and risk

Ubiquiti has a beta of 1.44, meaning its stock price is 44% more volatile than the S&P 500. Comparatively, Ubiquiti’s competitors have a beta of 1.11, meaning their average stock price is 11% more volatile than the S&P 500.

Dividends

Ubiquiti pays an annual dividend of $2.40 per share and has a dividend yield of 0.8%. Ubiquiti pays 28.1% of its profits as a dividend. As a group, the “radio & tv communication equipment” companies pay a dividend yield of 1.1% and pay out 35.2% of their profits as a dividend.

Summary

Ubiquiti beats its competitors on 7 of the 12 factors compared.

About Ubiquiti (Get a rating)

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