Financial Survey: Ubiquiti (NYSE:UI) and Nokia (NYSE:NOK)

Ubiquiti (NYSE:UI) and Nokia (NYSE:NOK) are both large-cap technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, profitability, valuation and earnings.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Ubiquiti and Nokia, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ubiquiti	1	2	1	0	2.00
Nokia	2	5	16	0	2.61

Ubiquiti currently has a consensus target price of $758.50, suggesting a potential upside of 11.43%. Nokia has a consensus target price of $13.41, suggesting a potential upside of 60.28%. Given Nokia’s stronger consensus rating and higher probable upside, analysts plainly believe Nokia is more favorable than Ubiquiti.

Insider & Institutional Ownership

4.0% of Ubiquiti shares are held by institutional investors. Comparatively, 5.3% of Nokia shares are held by institutional investors. 93.0% of Ubiquiti shares are held 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.

Risk & Volatility

Ubiquiti has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500. Comparatively, Nokia has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ubiquiti	30.08%	80.29%	53.47%
Nokia	3.80%	10.48%	5.94%

Dividends

Ubiquiti pays an annual dividend of $4.00 per share and has a dividend yield of 0.6%. Nokia pays an annual dividend of $0.08 per share and has a dividend yield of 1.0%. Ubiquiti pays out 22.6% of its earnings in the form of a dividend. Nokia pays out 50.0% 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.

Earnings and Valuation

This table compares Ubiquiti and Nokia”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ubiquiti	$3.27 billion	12.57	$960.30 million	$17.71	38.44
Nokia	$20.85 billion	2.30	$736.54 million	$0.16	52.28

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

Summary

Ubiquiti beats Nokia on 9 of the 16 factors compared between the two stocks.

About Ubiquiti

Ubiquiti Inc. develops and sells networking technology for businesses, service providers and consumers. Its products include wireless access points, routers, switches and broadband wireless equipment, along with network management software and security devices such as cameras and access control systems. The company markets products under brands including UniFi, airMAX, EdgeMAX and AmpliFi. Its UniFi platform brings together networking, video surveillance and access control products with centralized management tools.

About Nokia

Nokia is a Finland-based technology company focused on communications networks and related services. Its offerings include mobile and fixed network infrastructure, IP and optical networking, cloud and network software, and private wireless solutions for businesses and public-sector organizations. The company serves communications service providers, enterprises, governments and other customers around the world. It also develops and licenses technology and intellectual property, including through its patent-licensing business.