Universal Display (NASDAQ: OLED) and KEMET (NYSE:KEM) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.
Insider and Institutional Ownership
63.1% of Universal Display shares are owned by institutional investors. Comparatively, 70.2% of KEMET shares are owned by institutional investors. 5.2% of Universal Display shares are owned by insiders. Comparatively, 3.9% of KEMET shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Volatility & Risk
Universal Display has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, KEMET has a beta of 3.62, suggesting that its stock price is 262% more volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for Universal Display and KEMET, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Universal Display currently has a consensus price target of $159.91, suggesting a potential upside of 59.59%. KEMET has a consensus price target of $18.38, suggesting a potential downside of 5.04%. Given Universal Display’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Universal Display is more favorable than KEMET.
Universal Display pays an annual dividend of $0.24 per share and has a dividend yield of 0.2%. KEMET does not pay a dividend. Universal Display pays out 9.9% of its earnings in the form of a dividend.
This table compares Universal Display and KEMET’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Universal Display and KEMET’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Universal Display||$335.63 million||14.07||$103.88 million||$2.43||41.23|
|KEMET||$757.79 million||1.45||$47.98 million||$0.35||55.29|
Universal Display has higher earnings, but lower revenue than KEMET. Universal Display is trading at a lower price-to-earnings ratio than KEMET, indicating that it is currently the more affordable of the two stocks.
Universal Display beats KEMET on 10 of the 16 factors compared between the two stocks.
About Universal Display
Universal Display Corporation engages in the research, development, and commercialization of organic light emitting diode (OLED) technologies and materials for use in flat panel displays and solid-state lighting applications. As of February 22, 2018, it owned or had exclusive and co-exclusive licenses, or had sole license rights with respect to approximately 4,500 issued and pending patents worldwide. The company licenses and supplies its proprietary UniversalPHOLED materials to display and lighting manufacturers, and others. It is also involved in the research, development, and commercialization of other OLED device and manufacturing technologies, including FOLED that are flexible OLEDs for the fabrication of OLEDs on flexible substrates; encapsulation technology for the packaging of flexible OLEDs and other thin-film devices, as well as for use as a barrier film for plastic substrates; UniversalP2OLED, which are printable phosphorescent OLEDs; OVJP, an organic vapor jet printing technology; OVPD, an organic vapor phase deposition process for manufacturing a small molecule OLED; and TOLED, which are transparent OLEDs for the fabrication of OLEDs that have transparent cathodes. In addition, the company provides technology development and support services, including government contract work and support provided to third parties for the commercialization of their OLED products. Universal Display Corporation has strategic relationships with Samsung Display Co., Ltd.; LG Display Co., Ltd.; BOE Technology Group Co., Ltd.; Tianma Micro-electronics Co., Ltd.; AU Optronics Corporation; EverDisplay Optronics (Shanghai) Limited; Shenzhen Royole Display Technologies Co. Ltd.; Japan Display Inc.; Sharp Corporation; Konica Minolta Holdings Inc.; Sumitomo Chemical Company, Ltd.; OLEDWorks GmbH; and Kaneka Corporation. The company was founded in 1985 and is headquartered in Ewing, New Jersey.
KEMET Corporation, together with its subsidiaries, manufactures and sells passive electronic components under the KEMET brand worldwide and the TOKIN brand in Japan and Korea. The company operates through three segments: Solid Capacitors; Film and Electrolytics; and Electro-magnetic, Sensors & Actuators. It offers tantalum, aluminum polymer, and ceramic capacitors; film, paper, and electrolytic capacitors; and electro magnetically compatible materials and components, piezo materials and actuators, and various types of sensors. The company offers its products to various industries, including automotive, communications, computer-related, industrial, consumer, military/aerospace/marine, medical, and alternative energy industries. KEMET Corporation sells its products to original equipment manufacturers, electronics manufacturing services providers, and electronics distributors. The company was founded in 1919 and is headquartered in Simpsonville, South Carolina.
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