Universal Electronics (NASDAQ:UEIC – Get Free Report) and Lennar (NYSE:LEN – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, profitability, valuation and earnings.
Insider and Institutional Ownership
79.3% of Universal Electronics shares are held by institutional investors. Comparatively, 81.1% of Lennar shares are held by institutional investors. 17.1% of Universal Electronics shares are held by company insiders. Comparatively, 10.1% of Lennar shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Universal Electronics and Lennar”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Universal Electronics | $368.29 million | 0.19 | -$18.60 million | ($1.16) | -4.62 |
| Lennar | $34.19 billion | 0.53 | $2.08 billion | $5.29 | 14.47 |
Lennar has higher revenue and earnings than Universal Electronics. Universal Electronics is trading at a lower price-to-earnings ratio than Lennar, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Universal Electronics and Lennar, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Universal Electronics | 1 | 3 | 0 | 0 | 1.75 |
| Lennar | 10 | 8 | 1 | 0 | 1.53 |
Universal Electronics presently has a consensus price target of $4.25, suggesting a potential downside of 20.71%. Lennar has a consensus price target of $79.00, suggesting a potential upside of 3.21%. Given Lennar’s higher probable upside, analysts clearly believe Lennar is more favorable than Universal Electronics.
Risk & Volatility
Universal Electronics has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, Lennar has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.
Profitability
This table compares Universal Electronics and Lennar’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Universal Electronics | -4.57% | 2.70% | 1.44% |
| Lennar | 4.09% | 6.15% | 4.00% |
Summary
Lennar beats Universal Electronics on 12 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 Lennar
Lennar Corporation, together with its subsidiaries, operates as a homebuilder primarily under the Lennar brand in the United States. It operates through Homebuilding East, Homebuilding Central, Homebuilding Texas, Homebuilding West, Financial Services, Multifamily, and Lennar Other segments. The company’s homebuilding operations include the construction and sale of single-family attached and detached homes, as well as the purchase, development, and sale of residential land; and development, construction, and management of multifamily rental properties. It also offers residential mortgage financing, title, insurance, and closing services for home buyers and others, as well as originates and sells securitization commercial mortgage loans. In addition, the company is involved in the fund investment activity. It primarily serves first-time, move-up, active adult, and luxury homebuyers. Lennar Corporation was founded in 1954 and is based in Miami, Florida.
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