Ubiquiti (NYSE:UI) versus UTime (NASDAQ:WTO) Critical Analysis

UTime (NASDAQ:WTO) and Ubiquiti (NYSE:UI) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Institutional & Insider Ownership

1.1% of UTime shares are owned by institutional investors. Comparatively, 4.0% of Ubiquiti shares are owned by institutional investors. 54.6% of UTime shares are owned by insiders. Comparatively, 93.1% of Ubiquiti shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for UTime and Ubiquiti, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UTime	0	0	0	0	0.00
Ubiquiti	1	0	1	0	2.00

Ubiquiti has a consensus target price of $343.50, indicating a potential downside of 17.62%. Given Ubiquiti’s stronger consensus rating and higher probable upside, analysts clearly believe Ubiquiti is more favorable than UTime.

Profitability

This table compares UTime and Ubiquiti’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UTime	N/A	N/A	N/A
Ubiquiti	23.65%	217.49%	45.81%

Volatility and Risk

UTime has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500. Comparatively, Ubiquiti has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500.

Earnings and Valuation

This table compares UTime and Ubiquiti”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UTime	N/A	N/A	N/A	N/A	N/A
Ubiquiti	$1.93 billion	13.08	$349.96 million	$9.08	45.92

Ubiquiti has higher revenue and earnings than UTime.

Summary

Ubiquiti beats UTime on 10 of the 10 factors compared between the two stocks.

About UTime

UTime Limited, together with its subsidiaries, designs, develops, manufactures, sells, and operates mobile phones, accessories, and related consumer electronics. The company offers consumer electronics, such as power banks, bluetooth speakers, batteries, chargers, cell phone parts, molds, and shells. It provides electronics manufacturing services, including original equipment manufacturer and original design manufacturer services. It sells its products under the UTime and Do brand names in South America, South Asia, Southeast Asia, and Africa. UTime Limited was founded in 2008 and is headquartered in Shenzhen, China.

About Ubiquiti

Ubiquiti Inc. develops networking technology for service providers, enterprises, and consumers. The company develops technology platforms for high-capacity distributed Internet access, unified information technology, and consumer electronics for professional, home, and personal use. Its service provider product platforms offer carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems, and routing and related software; and enterprise product platforms provide wireless LAN infrastructure, video surveillance products, switching and routing solutions, security gateways, door access systems, and other WLAN products. The company also provides technology platforms, such as airMAX, which include proprietary protocols that contain technologies for minimizing signal noise; EdgeMAX, a software and system routing platform; airFiber, a wireless backhaul point-to-point radio system; and UFiber GPON, a plug and play fiber network technology to build high speed fiber internet networks. In addition, it offers UniFi Gateway Console, an enterprise class router and security gateway device; UniFi Wi-Fi, an enterprise Wi-Fi system; UniFi Protect, a video surveillance system, which provides statistical reporting and advanced analytics; UniFi Switch that deliver performance, switching, and power of ethernet support for enterprise networks; UniFi Access, a door access system; and UniFi Talk, a plug-and-play phone system and VoIP subscription service. Further, the company provides base stations, radios, backhaul equipment, and customer premise equipment; embedded radio products; and antennas. It serves customers through a network of distributors, online retailers, and direct 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.