WallStSmart

Franklin Wireless Corp (FKWL)vsUbiquiti Networks Inc (UI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Ubiquiti Networks Inc generates 7403% more annual revenue ($2.97B vs $39.61M). UI leads profitability with a 29.9% profit margin vs 0.5%. UI trades at a lower P/E of 57.0x. UI earns a higher WallStSmart Score of 73/100 (B).

FKWL

Hold

39

out of 100

Grade: F

Growth: 7.3Profit: 3.5Value: 3.0Quality: 9.0
Piotroski: 5/9Altman Z: 4.02

UI

Strong Buy

73

out of 100

Grade: B

Growth: 9.3Profit: 10.0Value: 5.3Quality: 7.3
Piotroski: 5/9Altman Z: 5.14
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FKWLSignificantly Overvalued (-338.3%)

Margin of Safety

-338.3%

Fair Value

$0.94

Current Price

$3.70

$2.76 premium

UndervaluedFair: $0.94Overvalued
UIFair Value (-4.0%)

Margin of Safety

-4.0%

Fair Value

$685.62

Current Price

$839.05

$153.43 premium

UndervaluedFair: $685.62Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FKWL4 strengths · Avg: 10.0/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

EPS GrowthGrowth
133.3%10/10

Earnings expanding 133.3% YoY

Debt/EquityHealth
0.0610/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.0210/10

Safe zone — low bankruptcy risk

UI6 strengths · Avg: 9.8/10
Return on EquityProfitability
136.1%10/10

Every $100 of equity generates 136 in profit

Operating MarginProfitability
35.9%10/10

Strong operational efficiency at 35.9%

Revenue GrowthGrowth
35.8%10/10

Revenue surging 35.8% year-over-year

EPS GrowthGrowth
70.8%10/10

Earnings expanding 70.8% YoY

Altman Z-ScoreHealth
5.1410/10

Safe zone — low bankruptcy risk

Market CapQuality
$50.50B9/10

Large-cap with strong market position

Areas to Watch

FKWL4 concerns · Avg: 3.0/10
Market CapQuality
$41.72M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.8%3/10

ROE of 0.8% — below average capital efficiency

Profit MarginProfitability
0.5%3/10

0.5% margin — thin

Operating MarginProfitability
0.4%3/10

Operating margin of 0.4%

UI2 concerns · Avg: 2.0/10
P/E RatioValuation
57.0x2/10

Premium valuation, high expectations priced in

Price/BookValuation
50.0x2/10

Trading at 50.0x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : FKWL

The strongest argument for FKWL centers on Price/Book, EPS Growth, Debt/Equity.

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 : FKWL

The primary concerns for FKWL are Market Cap, Return on Equity, Profit Margin. A P/E of 177.0x leaves little room for execution misses. Thin 0.5% margins leave little buffer for downturns.

Bear Case : UI

The primary concerns for UI are P/E Ratio, Price/Book. A P/E of 57.0x leaves little room for execution misses.

Key Dynamics to Monitor

FKWL profiles as a value stock while UI is a growth play — different risk/reward profiles.

UI carries more volatility with a beta of 1.37 — 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 (73/100 vs 39/100), backed by strong 29.9% margins and 35.8% revenue growth. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Franklin Wireless Corp

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

Franklin Wireless Corp. The company is headquartered in San Diego, California.

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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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