Critical Contrast: Ubiquiti Networks (UBNT) vs. Nokia Oyj (NOK)

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Ubiquiti Networks (NYSE: NOK) and Nokia Oyj (NYSE:NOK) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Analyst Ratings

This is a summary of current ratings and price targets for Ubiquiti Networks and Nokia Oyj, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ubiquiti Networks 0 4 0 0 2.00
Nokia Oyj 1 8 6 0 2.33

Ubiquiti Networks currently has a consensus target price of $71.33, indicating a potential downside of 27.03%. Nokia Oyj has a consensus target price of $5.39, indicating a potential downside of 2.09%. Given Nokia Oyj’s stronger consensus rating and higher probable upside, analysts plainly believe Nokia Oyj is more favorable than Ubiquiti Networks.

Profitability

This table compares Ubiquiti Networks and Nokia Oyj’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ubiquiti Networks 19.30% 69.24% 26.92%
Nokia Oyj -4.56% 9.10% 3.64%

Risk and Volatility

Ubiquiti Networks has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Nokia Oyj has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500.

Insider and Institutional Ownership

26.1% of Ubiquiti Networks shares are owned by institutional investors. Comparatively, 6.8% of Nokia Oyj shares are owned by institutional investors. 70.3% of Ubiquiti Networks shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Ubiquiti Networks and Nokia Oyj’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ubiquiti Networks $1.02 billion 7.12 $196.29 million $3.66 26.71
Nokia Oyj $26.15 billion 1.18 -$1.69 billion $0.37 14.86

Ubiquiti Networks has higher earnings, but lower revenue than Nokia Oyj. Nokia Oyj is trading at a lower price-to-earnings ratio than Ubiquiti Networks, indicating that it is currently the more affordable of the two stocks.

Dividends

Ubiquiti Networks pays an annual dividend of $1.00 per share and has a dividend yield of 1.0%. Nokia Oyj pays an annual dividend of $0.20 per share and has a dividend yield of 3.6%. Ubiquiti Networks pays out 27.3% of its earnings in the form of a dividend. Nokia Oyj pays out 54.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

Ubiquiti Networks beats Nokia Oyj on 11 of the 16 factors compared between the two stocks.

Ubiquiti Networks Company Profile

Ubiquiti Networks, Inc. develops networking technology for service providers, enterprises, and consumers. It focuses on three principal technologies, including high-capacity distributed Internet access, unified information technology, and consumer electronics for home and personal use. The company's service provider product platforms offer carrier-class 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 offers consumer products under the Ubiquiti Labs brand name. Its proprietary products and solutions include radios, antennas, software, communications protocols, and management tools to deliver wireless broadband access and other services. The company also provides technology platforms, such as airMAX platform, which include proprietary protocols that contain technologies for minimizing signal noise; EdgeMAX, a disruptive price-performance software and system routing platform; airFiber, a point-to-point radio system; and UFiber GPON platform to build high speed fiber Internet networks. In addition, it offers UniFi Enterprise WLAN; UniFi Video, a video surveillance system; UniFi Switch that deliver performance, switching, and PoE+ support for enterprise networks; and UniFi Security Gateway that provide routing and network security, as well as develops AmpliFi platform, a Wi-Fi system solution for connected homes. Further, Ubiquiti Networks, Inc. offers embedded radio products; and mounting brackets, cables, and power over Ethernet adapters. It serves customers through a network of approximately 100 distributors and online retailers worldwide. The company was formerly known as Pera Networks, Inc. and changed its name to Ubiquiti Networks, Inc. in 2005. Ubiquiti Networks, Inc. was incorporated in 2003 and is headquartered in New York, New York.

Nokia Oyj Company Profile

Nokia Corporation engages in the network and technology businesses worldwide. The company operates through four segments: Ultra Broadband Networks, Global Services, IP Networks and Applications, and Nokia Technologies. It provides mobile networking solutions, including hardware, software, and services for telecommunications operators, enterprises, and related markets/verticals. It also offers fixed networking solutions, such as copper based solutions; fiber-to-the-home solutions, including Ethernet point-to-point, gigabit passive optical networks, EPON, and 10 gigabit next generation fiber technologies; fiber access products, solutions, and services; and public switched telephone network transformation, ultra-broadband network design, deployment and operation, site implementation and outside plant, and multi-vendor maintenance services. In addition, the company provides network implementation, care, and professional services for mobile networks; and managed services, such as network and service management, build-operate-transfer model, hosting, analytics, Internet of Things (IoT), cloud, and security operation services for the fixed, mobile, applications, Internet protocol (IP), and optical domains. Further, it offers network planning and optimization services to enhance the network performance and quality, and analytics-based services; and network architecture, integration, customization, and migration services. Additionally, the company provides IP/optical networking solutions, including IP routing and optical transport systems, software, and services; software solutions, such as customer experience management, network operations and management, communications and collaborations, policy and charging, as well as Cloud, IoT, security, and analytics platforms; and submarine networks and radio frequency systems. Nokia Corporation has a collaboration agreement with Filtronic. The company was founded in 1865 and is headquartered in Espoo, Finland.

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