H2O America (HTO)vsUbiquiti Networks Inc (UI)
HTO
H2O America
$57.60
-0.66%
UTILITIES · Cap: $2.37B
UI
Ubiquiti Networks Inc
$1,028.31
+1.32%
TECHNOLOGY · Cap: $61.72B
Smart Verdict
WallStSmart Research — data-driven comparison
Ubiquiti Networks Inc generates 264% more annual revenue ($2.97B vs $816.28M). UI leads profitability with a 29.9% profit margin vs 12.9%. UI appears more attractively valued with a PEG of 1.10. UI earns a higher WallStSmart Score of 71/100 (B).
HTO
Buy57
out of 100
Grade: C
UI
Strong Buy71
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+32.5%
Fair Value
$76.99
Current Price
$57.60
$19.39 discount
Margin of Safety
-85.1%
Fair Value
$385.30
Current Price
$1028.31
$643.01 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Strong operational efficiency at 21.5%
Every $100 of equity generates 136 in profit
Strong operational efficiency at 35.9%
Revenue surging 35.8% year-over-year
Earnings expanding 70.8% YoY
Safe zone — low bankruptcy risk
Large-cap with strong market position
Areas to Watch
0.0% earnings growth
ROE of 6.5% — below average capital efficiency
Expensive relative to growth rate
Negative free cash flow — burning cash
Premium valuation, high expectations priced in
Trading at 61.2x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : HTO
The strongest argument for HTO centers on Price/Book, Operating Margin.
Bull Case : UI
The strongest argument for UI centers on Return on Equity, Operating Margin, Revenue Growth. Profitability is solid with margins at 29.9% and operating margin at 35.9%. Revenue growth of 35.8% demonstrates continued momentum.
Bear Case : HTO
The primary concerns for HTO are EPS Growth, Return on Equity, PEG Ratio.
Bear Case : UI
The primary concerns for UI are P/E Ratio, Price/Book. A P/E of 69.5x leaves little room for execution misses.
Key Dynamics to Monitor
HTO profiles as a value stock while UI is a growth play — different risk/reward profiles.
UI carries more volatility with a beta of 1.32 — expect wider price swings.
UI is growing revenue faster at 35.8% — sustainability is the question.
UI generates stronger free cash flow (259M), providing more financial flexibility.
Bottom Line
UI scores higher overall (71/100 vs 57/100), backed by strong 29.9% margins and 35.8% revenue growth. HTO offers better value entry with a 32.5% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
H2O America
UTILITIES · UTILITIES - REGULATED WATER · USA
H2O America, provides water utility and other related services in the United States. The company is headquartered in San Jose, California.
Ubiquiti Networks Inc
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Ubiquiti Inc. develops network technology for service providers, businesses and consumers. The company is headquartered in New York, New York.
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