ZTE (OTCMKTS:ZTCOY) vs. Universal Entertainment (OTCMKTS:UETMF) Financial Analysis

Universal Entertainment (OTCMKTS:UETMF) and ZTE (OTCMKTS:ZTCOY) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, institutional ownership and profitability.

Earnings & Valuation

This table compares Universal Entertainment and ZTE’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Entertainment	$1.28 billion	0.59	$201.92 million	$2.65	3.54
ZTE	$17.75 billion	0.53	$1.06 billion	$0.47	8.60

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

Analyst Ratings

This is a summary of recent ratings for Universal Entertainment and ZTE, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Entertainment	0	0	0	0	N/A
ZTE	0	0	0	0	N/A

Profitability

This table compares Universal Entertainment and ZTE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Universal Entertainment	5.07%	2.37%	1.45%
ZTE	5.89%	13.25%	4.04%

Volatility & Risk

Universal Entertainment has a beta of 0.18, suggesting that its share price is 82% less volatile than the S&P 500. Comparatively, ZTE has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.

Summary

ZTE beats Universal Entertainment on 7 of the 9 factors compared between the two stocks.

About Universal Entertainment

Universal Entertainment Corporation, together with its subsidiaries, manufactures, develops, and sells pachislot and pachinko machines in Japan, Philippines, and internationally. The company operates in two segments, Amusement Equipment Business, and Integrated Resort Business. The company also develops and provides Falcon X, a peripheral system; Hot Stadium, a digital signage system; Universal Kingdom, a membership website for Android; and Slots Street, a social casino game; as well as operates OKADA MANILA, a casino resort in the Philippines. In addition, it operates casino, hotel, food and beverage, retail and leasing, entertainment, and real estate development businesses. The company was formerly known as Aruze Corp. and changed its name to Universal Entertainment Corporation in November 2009. Universal Entertainment Corporation was founded in 1969 and is headquartered in Tokyo, Japan.

About ZTE

ZTE Corporation provides integrated communication information solutions in the People's Republic of China, rest of Asia, Africa, Europe, the United States, and Oceania. It operates through three segments: Carriers' Networks, Government and Corporate Business, and Consumer Business. The Carriers' Network segment provides wireless access, wireline access, bearer systems, core networks, telecommunication software systems and services, and other technologies and product solutions for meeting carries' requirements. The Consumer Business segment offers smart phones, mobile data terminals, family terminals, and fusion terminals, as well as related software application and value-added services. The Government and Corporate Business segment focuses on providing informatization solutions for the government and corporations through the application of products, such as communications networks, Internet of Things, big data, and cloud computing. The company was founded in 1985 and is headquartered in Shenzhen, the People's Republic of China.