Head-To-Head Comparison: LG Display (LPL) vs. Cisco Systems (NASDAQ:CSCO)

LG Display (NYSE: LPL) and Cisco Systems (NASDAQ:CSCO) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.

Profitability

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This table compares LG Display and Cisco Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LG Display 6.61% 12.40% 6.63%
Cisco Systems -3.00% 17.77% 8.55%

Dividends

Cisco Systems pays an annual dividend of $1.32 per share and has a dividend yield of 3.1%. LG Display does not pay a dividend. Cisco Systems pays out 61.4% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for LG Display and Cisco Systems, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LG Display 0 1 3 0 2.75
Cisco Systems 0 10 21 1 2.72

LG Display currently has a consensus target price of $15.00, indicating a potential upside of 28.21%. Cisco Systems has a consensus target price of $44.14, indicating a potential upside of 3.83%. Given LG Display’s stronger consensus rating and higher possible upside, equities analysts clearly believe LG Display is more favorable than Cisco Systems.

Insider and Institutional Ownership

3.3% of LG Display shares are held by institutional investors. Comparatively, 77.6% of Cisco Systems shares are held by institutional investors. 0.1% of Cisco Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares LG Display and Cisco Systems’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LG Display $24.59 billion 0.34 $1.74 billion $2.40 4.88
Cisco Systems $48.01 billion 4.27 $9.61 billion $2.15 19.77

Cisco Systems has higher revenue and earnings than LG Display. LG Display is trading at a lower price-to-earnings ratio than Cisco Systems, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

LG Display has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, Cisco Systems has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500.

Summary

Cisco Systems beats LG Display on 12 of the 17 factors compared between the two stocks.

About LG Display

LG Display Co., Ltd. manufactures and sells thin-film transistor liquid crystal display and organic light-emitting diode (OLED) technology-based display panels in the Republic of Korea, the Americas, Europe, Asia, and internationally. It offers various display panels primarily for use in televisions, notebook computers, desktop monitors, tablet computers, and mobile devices. The company also provides panels for industrial and other applications, including entertainment systems, automotive displays, portable navigation devices, and medical diagnostic equipment. It serves end-brand customers and their system integrators. The company was formerly known as LG.Philips LCD Co., Ltd. and changed its name to LG Display Co., Ltd. in February 2008. LG Display Co., Ltd. was founded in 1985 and is headquartered in Seoul, South Korea.

About Cisco Systems

Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol (IP) based networking and other products related to the communications and information technology industry worldwide. The company offers switching products, including fixed-configuration and modular switches, and storage products that provide connectivity to end users, workstations, IP phones, wireless access points, and servers; and next-generation network routing products that interconnect public and private wireline and mobile networks for mobile, data, voice, and video applications. It also provides collaboration products comprising unified communications products, conferencing products, collaboration endpoints, and business messaging products; data center products, such as blade and rack servers, series, fabric interconnects, and management software solutions; wireless products consisting of wireless access points, WLAN controllers, cloud and appliances based services, and integrated software services. In addition, the company offers security products, including network and data center security, advanced threat protection, Web and email security, access and policy, unified threat management, and advisory, integration, and managed services; and other products, such as emerging technologies and other networking products. Further, the company offers a distributed file system for hyperconvergence that enables server-based storage systems; service provider video software and solutions; and technical support services and advanced services. It serves businesses of various sizes, public institutions, governments, and service providers. The company sells its products directly, as well as through channel partners, such as systems integrators, service providers, other resellers, and distributors. The company was founded in 1984 and is headquartered in San Jose, California.

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