Analyzing Ubiquiti Networks (UBNT) and Its Peers

Ubiquiti Networks (NASDAQ: UBNT) is one of 42 publicly-traded companies in the “Radio & t.v. communications equipment” industry, but how does it contrast to its competitors? We will compare Ubiquiti Networks to similar companies based on the strength of its analyst recommendations, institutional ownership, dividends, risk, earnings, valuation and profitability.

Valuation & Earnings

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This table compares Ubiquiti Networks and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Ubiquiti Networks $865.27 million $257.50 million 23.38
Ubiquiti Networks Competitors $3.90 billion $104.43 million 15.19

Ubiquiti Networks’ competitors have higher revenue, but lower earnings than Ubiquiti Networks. Ubiquiti Networks is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Ubiquiti Networks and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ubiquiti Networks 1 3 0 0 1.75
Ubiquiti Networks Competitors 284 1293 1810 100 2.49

Ubiquiti Networks presently has a consensus target price of $57.33, suggesting a potential downside of 20.65%. As a group, “Radio & t.v. communications equipment” companies have a potential upside of 15.94%. Given Ubiquiti Networks’ competitors stronger consensus rating and higher possible upside, analysts plainly believe Ubiquiti Networks has less favorable growth aspects than its competitors.

Profitability

This table compares Ubiquiti Networks and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ubiquiti Networks 15.73% 47.42% 25.83%
Ubiquiti Networks Competitors -215.99% -28.21% -15.01%

Institutional & Insider Ownership

31.1% of Ubiquiti Networks shares are held by institutional investors. Comparatively, 42.5% of shares of all “Radio & t.v. communications equipment” companies are held by institutional investors. 72.8% of Ubiquiti Networks shares are held by insiders. Comparatively, 14.3% of shares of all “Radio & t.v. communications equipment” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Ubiquiti Networks has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, Ubiquiti Networks’ competitors have a beta of 1.05, meaning that their average stock price is 4% more volatile than the S&P 500.

Summary

Ubiquiti Networks competitors beat Ubiquiti Networks on 7 of the 13 factors compared.

Ubiquiti Networks Company Profile

Ubiquiti Networks, Inc. develops networking technology for service providers, enterprises, and consumers worldwide. 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 complimentary WLAN products. Its products and solutions include radios, antennas, software, communications protocols, and management tools to deliver carrier and enterprise class wireless broadband access and other services in the unlicensed RF spectrum. The company also provides technology platforms, such as airMAX platform, which includes proprietary protocols that contain technologies for minimizing signal noise; EdgeMAX, a disruptive software and system routing platform; airFiber, a point-to-point radio system; and UFiber platform to build fiber Internet networks. In addition, it offers UniFi Enterprise Wi-Fi System that includes Wi-Fi certified hardware with a software based management controller; UniFi Video IP cameras for data transmission and power-over-Ethernet; UniFi Switches that deliver performance, switching, and PoE+ support for enterprise networks; and UniFi Security Gateway that extends the UniFi enterprise solutions to provide routing and network security, as well as develops AmpliFi platform, a Wi-Fi system solution for connected homes. Further, the company provides embedded radio products; and mounting brackets, cables, and power over Ethernet adapters. 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.

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