Seek Returns logo

NET vs. UI: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at NET and UI, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolNETUI
Company NameCloudflare, Inc.Ubiquiti Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustryIT ServicesCommunications Equipment
Market Capitalization75.39 billion USD40.80 billion USD
ExchangeNYSENYSE
Listing DateSeptember 13, 2019October 14, 2011
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of NET and UI by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

NET vs. UI: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolNETUI
5-Day Price Return-1.37%3.45%
13-Week Price Return9.58%60.47%
26-Week Price Return77.13%110.18%
52-Week Price Return163.01%200.36%
Month-to-Date Return2.82%25.08%
Year-to-Date Return99.28%99.01%
10-Day Avg. Volume2.58M0.20M
3-Month Avg. Volume2.89M0.14M
3-Month Volatility36.53%74.34%
Beta2.121.49

Profitability

Return on Equity (TTM)

NET

-10.00%

IT Services Industry

Max
32.78%
Q3
19.28%
Median
13.86%
Q1
5.50%
Min
-10.00%

NET has a negative Return on Equity of -10.00%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

UI

179.90%

Communications Equipment Industry

Max
32.30%
Q3
20.90%
Median
9.10%
Q1
4.29%
Min
-13.50%

UI’s Return on Equity of 179.90% is exceptionally high, placing it well beyond the typical range for the Communications Equipment industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

NET vs. UI: A comparison of their Return on Equity (TTM) against their respective IT Services and Communications Equipment industry benchmarks.

Net Profit Margin (TTM)

NET

-6.22%

IT Services Industry

Max
19.71%
Q3
11.01%
Median
6.66%
Q1
2.96%
Min
-6.22%

NET has a negative Net Profit Margin of -6.22%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

UI

27.66%

Communications Equipment Industry

Max
23.65%
Q3
12.56%
Median
5.62%
Q1
2.50%
Min
-3.09%

UI’s Net Profit Margin of 27.66% is exceptionally high, placing it well beyond the typical range for the Communications Equipment industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

NET vs. UI: A comparison of their Net Profit Margin (TTM) against their respective IT Services and Communications Equipment industry benchmarks.

Operating Profit Margin (TTM)

NET

-9.89%

IT Services Industry

Max
22.44%
Q3
14.90%
Median
8.82%
Q1
4.91%
Min
-9.89%

NET has a negative Operating Profit Margin of -9.89%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

UI

32.50%

Communications Equipment Industry

Max
25.23%
Q3
13.72%
Median
6.44%
Q1
3.00%
Min
-10.95%

UI’s Operating Profit Margin of 32.50% is exceptionally high, placing it well above the typical range for the Communications Equipment industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

NET vs. UI: A comparison of their Operating Profit Margin (TTM) against their respective IT Services and Communications Equipment industry benchmarks.

Profitability at a Glance

SymbolNETUI
Return on Equity (TTM)-10.00%179.90%
Return on Assets (TTM)-2.99%55.77%
Net Profit Margin (TTM)-6.22%27.66%
Operating Profit Margin (TTM)-9.89%32.50%
Gross Profit Margin (TTM)76.14%43.42%

Financial Strength

Current Ratio (MRQ)

NET

5.14

IT Services Industry

Max
3.17
Q3
2.00
Median
1.47
Q1
1.05
Min
0.52

NET’s Current Ratio of 5.14 is exceptionally high, placing it well outside the typical range for the IT Services industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

UI

1.65

Communications Equipment Industry

Max
3.33
Q3
2.13
Median
1.55
Q1
1.15
Min
0.91

UI’s Current Ratio of 1.65 aligns with the median group of the Communications Equipment industry, indicating that its short-term liquidity is in line with its sector peers.

NET vs. UI: A comparison of their Current Ratio (MRQ) against their respective IT Services and Communications Equipment industry benchmarks.

Debt-to-Equity Ratio (MRQ)

NET

2.63

IT Services Industry

Max
3.11
Q3
1.55
Median
0.55
Q1
0.17
Min
0.00

NET’s leverage is in the upper quartile of the IT Services industry, with a Debt-to-Equity Ratio of 2.63. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

UI

0.37

Communications Equipment Industry

Max
1.44
Q3
0.86
Median
0.53
Q1
0.22
Min
0.00

UI’s Debt-to-Equity Ratio of 0.37 is typical for the Communications Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

NET vs. UI: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective IT Services and Communications Equipment industry benchmarks.

Interest Coverage Ratio (TTM)

NET

-4.24

IT Services Industry

Max
129.00
Q3
56.00
Median
11.69
Q1
0.77
Min
-28.15

NET has a negative Interest Coverage Ratio of -4.24. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

UI

27.30

Communications Equipment Industry

Max
55.49
Q3
34.19
Median
7.59
Q1
3.73
Min
-9.94

UI’s Interest Coverage Ratio of 27.30 is positioned comfortably within the norm for the Communications Equipment industry, indicating a standard and healthy capacity to cover its interest payments.

NET vs. UI: A comparison of their Interest Coverage Ratio (TTM) against their respective IT Services and Communications Equipment industry benchmarks.

Financial Strength at a Glance

SymbolNETUI
Current Ratio (MRQ)5.141.65
Quick Ratio (MRQ)5.010.62
Debt-to-Equity Ratio (MRQ)2.630.37
Interest Coverage Ratio (TTM)-4.2427.30

Growth

Revenue Growth

NET vs. UI: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

NET vs. UI: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

NET

0.00%

IT Services Industry

Max
2.79%
Q3
1.76%
Median
0.58%
Q1
0.00%
Min
0.00%

NET currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

UI

0.36%

Communications Equipment Industry

Max
8.13%
Q3
3.29%
Median
0.94%
Q1
0.00%
Min
0.00%

UI’s Dividend Yield of 0.36% is consistent with its peers in the Communications Equipment industry, providing a dividend return that is standard for its sector.

NET vs. UI: A comparison of their Dividend Yield (TTM) against their respective IT Services and Communications Equipment industry benchmarks.

Dividend Payout Ratio (TTM)

NET

0.00%

IT Services Industry

Max
107.85%
Q3
52.62%
Median
22.53%
Q1
0.00%
Min
0.00%

NET has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

UI

20.39%

Communications Equipment Industry

Max
111.16%
Q3
70.91%
Median
30.78%
Q1
0.00%
Min
0.00%

UI’s Dividend Payout Ratio of 20.39% is within the typical range for the Communications Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

NET vs. UI: A comparison of their Dividend Payout Ratio (TTM) against their respective IT Services and Communications Equipment industry benchmarks.

Dividend at a Glance

SymbolNETUI
Dividend Yield (TTM)0.00%0.36%
Dividend Payout Ratio (TTM)0.00%20.39%

Valuation

Price-to-Earnings Ratio (TTM)

NET

--

IT Services Industry

Max
56.41
Q3
33.17
Median
23.17
Q1
16.18
Min
6.62

P/E Ratio data for NET is currently unavailable.

UI

57.28

Communications Equipment Industry

Max
103.74
Q3
61.65
Median
26.20
Q1
18.12
Min
4.19

UI’s P/E Ratio of 57.28 is within the middle range for the Communications Equipment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

NET vs. UI: A comparison of their Price-to-Earnings Ratio (TTM) against their respective IT Services and Communications Equipment industry benchmarks.

Price-to-Sales Ratio (TTM)

NET

40.25

IT Services Industry

Max
5.99
Q3
4.26
Median
1.93
Q1
0.97
Min
0.12

With a P/S Ratio of 40.25, NET trades at a valuation that eclipses even the highest in the IT Services industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

UI

15.84

Communications Equipment Industry

Max
6.86
Q3
6.24
Median
2.44
Q1
1.02
Min
0.48

With a P/S Ratio of 15.84, UI trades at a valuation that eclipses even the highest in the Communications Equipment industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

NET vs. UI: A comparison of their Price-to-Sales Ratio (TTM) against their respective IT Services and Communications Equipment industry benchmarks.

Price-to-Book Ratio (MRQ)

NET

54.75

IT Services Industry

Max
12.34
Q3
7.54
Median
3.84
Q1
2.52
Min
0.88

At 54.75, NET’s P/B Ratio is at an extreme premium to the IT Services industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

UI

37.26

Communications Equipment Industry

Max
6.28
Q3
5.73
Median
3.32
Q1
2.02
Min
0.42

At 37.26, UI’s P/B Ratio is at an extreme premium to the Communications Equipment industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

NET vs. UI: A comparison of their Price-to-Book Ratio (MRQ) against their respective IT Services and Communications Equipment industry benchmarks.

Valuation at a Glance

SymbolNETUI
Price-to-Earnings Ratio (TTM)--57.28
Price-to-Sales Ratio (TTM)40.2515.84
Price-to-Book Ratio (MRQ)54.7537.26
Price-to-Free Cash Flow Ratio (TTM)422.6864.99