Contrasting BIO-key International (NASDAQ:BKYI) & Universal Electronics (NASDAQ:UEIC)

Universal Electronics (NASDAQ:UEIC) and BIO-key International (NASDAQ:BKYI) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.

Valuation & Earnings

This table compares Universal Electronics and BIO-key International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Electronics	$368.29 million	0.16	-$18.60 million	($1.50)	-3.14
BIO-key International	$6.10 million	0.89	-$4.59 million	($5.55)	-0.90

BIO-key International has lower revenue, but higher earnings than Universal Electronics. Universal Electronics is trading at a lower price-to-earnings ratio than BIO-key International, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations for Universal Electronics and BIO-key International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Electronics	1	2	0	0	1.67
BIO-key International	1	0	0	0	1.00

Universal Electronics currently has a consensus target price of $5.75, indicating a potential upside of 22.21%. Given Universal Electronics’ stronger consensus rating and higher probable upside, equities analysts clearly believe Universal Electronics is more favorable than BIO-key International.

Profitability

This table compares Universal Electronics and BIO-key International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Universal Electronics	-5.54%	0.41%	0.21%
BIO-key International	-75.32%	-67.43%	-43.29%

Insider and Institutional Ownership

79.3% of Universal Electronics shares are owned by institutional investors. Comparatively, 26.5% of BIO-key International shares are owned by institutional investors. 17.1% of Universal Electronics shares are owned by company insiders. Comparatively, 3.9% of BIO-key International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Universal Electronics has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500. Comparatively, BIO-key International has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500.

Summary

Universal Electronics beats BIO-key International on 10 of the 13 factors compared between the two stocks.

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.

About BIO-key International

BIO-key International, Inc. develops and markets fingerprint identification biometric technology and software solutions, and enterprise-ready identity access management solutions for commercial, government, and education customers in the United States and internationally. The company offers BIO-key PortalGuard and PortalGuard IDaaS solutions, a customer-controlled and neutral-by-design cloud-based identity platform that allows customers to integrate with any cloud or on-premises SaaS application, as well as windows device authentication through IAM platform. Its solutions enable its customers to secure their workforces and student populations; and make their partner networks more collaborative. In addition, it provides BIO-key VST and WEB-key products; and Civil and Large-Scale ID Infrastructure solutions that develops finger-based biometric technology. Further, it offers finger scanners for enterprise and consumer markets under SideSwipe, EcoID, and SidePass brand names. The company was formerly known as SAC Technologies and changed its name to BIO-key International, Inc. in 2002. BIO-key International, Inc. was founded in 1993 and is headquartered in Wall, New Jersey.