Contrasting Taylor Wimpey (OTCMKTS:TWODY) and Universal Electronics (NASDAQ:UEIC)

Taylor Wimpey (OTCMKTS:TWODY) and Universal Electronics (NASDAQ:UEIC) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, dividends, risk and institutional ownership.

Profitability

This table compares Taylor Wimpey and Universal Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Taylor Wimpey	N/A	N/A	N/A
Universal Electronics	-4.57%	2.70%	1.44%

Valuation & Earnings

This table compares Taylor Wimpey and Universal Electronics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Taylor Wimpey	$4.37 billion	0.91	$433.99 million	N/A	N/A
Universal Electronics	$368.29 million	0.17	-$18.60 million	($1.16)	-4.18

Taylor Wimpey has higher revenue and earnings than Universal Electronics.

Institutional and Insider Ownership

79.3% of Universal Electronics shares are owned by institutional investors. 17.1% of Universal Electronics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Taylor Wimpey has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, Universal Electronics has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Taylor Wimpey and Universal Electronics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Taylor Wimpey	2	1	1	0	1.75
Universal Electronics	1	2	0	0	1.67

Universal Electronics has a consensus target price of $4.25, indicating a potential downside of 12.37%. Given Universal Electronics’ higher possible upside, analysts clearly believe Universal Electronics is more favorable than Taylor Wimpey.

About Taylor Wimpey

Taylor Wimpey plc operates as a homebuilder in the United Kingdom and Spain. It builds and delivers various homes and communities. Taylor Wimpey plc was incorporated in 1935 and is based in High Wycombe, the United Kingdom.

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.