Bel Fuse (NASDAQ:BELFA) & Universal Electronics (NASDAQ:UEIC) Critical Comparison

Universal Electronics (NASDAQ:UEIC) and Bel Fuse (NASDAQ:BELFA) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Universal Electronics and Bel Fuse, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Electronics	0	1	1	0	2.50
Bel Fuse	0	0	1	1	3.50

Universal Electronics presently has a consensus target price of $11.00, suggesting a potential upside of 118.25%. Bel Fuse has a consensus target price of $115.00, suggesting a potential downside of 3.38%. Given Universal Electronics’ higher possible upside, equities analysts plainly believe Universal Electronics is more favorable than Bel Fuse.

Insider & Institutional Ownership

79.3% of Universal Electronics shares are owned by institutional investors. Comparatively, 6.0% of Bel Fuse shares are owned by institutional investors. 10.5% of Universal Electronics shares are owned by insiders. Comparatively, 5.5% of Bel Fuse 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.

Profitability

This table compares Universal Electronics and Bel Fuse’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Universal Electronics	-4.07%	-1.02%	-0.50%
Bel Fuse	8.59%	18.33%	8.08%

Earnings & Valuation

This table compares Universal Electronics and Bel Fuse”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Electronics	$402.52 million	0.17	-$24.03 million	($1.25)	-4.03
Bel Fuse	$534.79 million	2.82	$40.96 million	$3.86	30.83

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

Risk and Volatility

Universal Electronics has a beta of 1.62, suggesting that its stock price is 62% more volatile than the S&P 500. Comparatively, Bel Fuse has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.

Summary

Bel Fuse beats Universal Electronics on 10 of the 14 factors compared between the two stocks.

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.

About Bel Fuse

Bel Fuse Inc. designs, manufactures, markets, and sells products that power, protect, and connect electronic circuits. The company's products are used in the networking, telecommunications, computing, general industrial, high-speed data transmission, military, commercial aerospace, transportation, and e-Mobility industries. It provides power solutions and protection products, including front-end power supplies, board-mount power products, industrial and transportation power products, external power products, and circuit protection products. The company also offers connectivity solutions, such as expanded beam fiber optic connectors, cable assemblies, and active optical devices; copper-based connectors/cable assemblies; radio frequency connectors, cable assemblies, microwave devices, and low loss cables; and ethernet, I/O, and industrial and power connectivity products. In addition, it provides magnetic solutions comprising integrated connector modules, power transformers, SMD power inductors and SMPS transformers, and ethernet discrete components. The company sells its products through direct strategic account managers, regional sales managers working with independent sales representative organizations, and authorized distributors in the United States, the People's Republic of China, Macao, the United Kingdom, Slovakia, Germany, India, Switzerland, and internationally. Bel Fuse Inc. was incorporated in 1949 and is headquartered in West Orange, New Jersey.