WallStSmart

Ubiquiti Networks Inc (UI)vsWestern Digital Corporation (WDC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Western Digital Corporation generates 296% more annual revenue ($11.78B vs $2.97B). WDC leads profitability with a 55.3% profit margin vs 29.9%. WDC appears more attractively valued with a PEG of 0.87. WDC earns a higher WallStSmart Score of 79/100 (B+).

UI

Strong Buy

71

out of 100

Grade: B

Growth: 9.3Profit: 10.0Value: 3.3Quality: 7.3
Piotroski: 5/9Altman Z: 5.14

WDC

Strong Buy

79

out of 100

Grade: B+

Growth: 7.3Profit: 9.5Value: 6.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

UISignificantly Overvalued (-85.1%)

Margin of Safety

-85.1%

Fair Value

$385.30

Current Price

$1028.31

$643.01 premium

UndervaluedFair: $385.30Overvalued

Intrinsic value data unavailable for WDC.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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
$61.72B9/10

Large-cap with strong market position

WDC6 strengths · Avg: 9.8/10
Return on EquityProfitability
85.9%10/10

Every $100 of equity generates 86 in profit

Profit MarginProfitability
55.3%10/10

Keeps 55 of every $100 in revenue as profit

Operating MarginProfitability
37.0%10/10

Strong operational efficiency at 37.0%

Revenue GrowthGrowth
45.5%10/10

Revenue surging 45.5% year-over-year

EPS GrowthGrowth
477.2%10/10

Earnings expanding 477.2% YoY

Market CapQuality
$152.47B9/10

Large-cap with strong market position

Areas to Watch

UI2 concerns · Avg: 2.0/10
P/E RatioValuation
69.5x2/10

Premium valuation, high expectations priced in

Price/BookValuation
61.2x2/10

Trading at 61.2x book value

WDC2 concerns · Avg: 3.0/10
P/E RatioValuation
25.8x4/10

Moderate valuation

Price/BookValuation
23.1x2/10

Trading at 23.1x book value

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : WDC

The strongest argument for WDC centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 55.3% and operating margin at 37.0%. Revenue growth of 45.5% demonstrates continued momentum.

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.

Bear Case : WDC

The primary concerns for WDC are P/E Ratio, Price/Book.

Key Dynamics to Monitor

WDC carries more volatility with a beta of 2.16 — expect wider price swings.

WDC is growing revenue faster at 45.5% — sustainability is the question.

WDC generates stronger free cash flow (978M), providing more financial flexibility.

Monitor COMMUNICATION EQUIPMENT industry trends, competitive dynamics, and regulatory changes.

Bottom Line

WDC scores higher overall (79/100 vs 71/100), backed by strong 55.3% margins and 45.5% revenue growth. Both earn "Strong Buy" and "Strong 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.

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.

Western Digital Corporation

TECHNOLOGY · COMPUTER HARDWARE · USA

Western Digital Corporation (WDC, commonly known as Western Digital or WD) is an American computer hard disk drive manufacturer and data storage company, headquartered in San Jose, California. It designs, manufactures and sells data technology products, including storage devices, data center systems and cloud storage services.

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