Head-To-Head Review: AU Optronics (OTCMKTS:AUOTY) and Universal Display (NASDAQ:OLED)

AU Optronics (OTCMKTS:AUOTYGet Free Report) and Universal Display (NASDAQ:OLEDGet Free Report) are both mid-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, institutional ownership, profitability, valuation, analyst recommendations, risk and dividends.

Analyst Recommendations

This is a breakdown of recent ratings for AU Optronics and Universal Display, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AU Optronics 0 0 0 0 0.00
Universal Display 0 2 5 0 2.71

Universal Display has a consensus target price of $190.43, suggesting a potential upside of 22.47%. Given Universal Display’s stronger consensus rating and higher probable upside, analysts clearly believe Universal Display is more favorable than AU Optronics.

Earnings and Valuation

This table compares AU Optronics and Universal Display”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AU Optronics $8.03 billion 0.47 -$584.71 million ($0.26) -18.88
Universal Display $647.68 million 11.41 $222.08 million $4.81 32.33

Universal Display has lower revenue, but higher earnings than AU Optronics. AU Optronics is trading at a lower price-to-earnings ratio than Universal Display, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares AU Optronics and Universal Display’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AU Optronics N/A N/A N/A
Universal Display 35.40% 15.35% 13.47%

Insider and Institutional Ownership

78.2% of Universal Display shares are held by institutional investors. 16.0% of AU Optronics shares are held by company insiders. Comparatively, 1.9% of Universal Display shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

AU Optronics has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500. Comparatively, Universal Display has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500.

Summary

Universal Display beats AU Optronics on 12 of the 14 factors compared between the two stocks.

About AU Optronics

(Get Free Report)

AUO Corporation researches, develops, produces, and sells thin film transistor liquid crystal displays (TFT-LCDs) and other flat panel displays for various applications. It operates through two segments, Display and Energy. The company designs, manufactures, and sells ingots, solar wafers, and solar modules, as well as provides technical engineering and maintenance services for solar system projects. It also sells and leases content management system and related hardware; designs digital signage content and field curation solutions; plans, designs, and develops construction project for environmental protection and related project management; and designs, manufactures, and sells TFT-LCD modules, TV sets and related parts, backlight modules, automotive parts, and precision plastic parts. In addition, the company engages in the development, manufacturing, and sale of medical equipment; services related to site rental and educational activities; research and development, and IP related business; solar power generation; and sale and sales support of TFTLCD panels. Further, it designs, develops, and sells software and hardware for health care industry; provides software and hardware integration system and equipment relating to intelligent manufacturing, as well as software development and related consulting services; and investment services. It operates in the People's Republic of China, Taiwan, the United States, Japan, Singapore, and internationally. The company was formerly known as AU Optronics Corp. and changed its name to AUO Corporation in June 2022. AUO Corporation was founded in 1996 and is headquartered in Hsinchu City, Taiwan.

About Universal Display

(Get Free Report)

Universal Display Corporation engages in the research, development, and commercialization of organic light emitting diode (OLED) technologies and materials for use in display and solid-state lighting applications in the United States and internationally. The company offers PHOLED technologies and materials for displays and lighting products under the UniversalPHOLED brand. 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; and OVJP, an organic vapor jet printing technology. In addition, the company provides technology development and support services, including third-party collaboration and support to third parties for the commercialization of their OLED products; and contract research services in the areas of chemical synthesis research, development, and commercialization for non-OLED applications, as well as engages in the intellectual property and technology licensing activities. Universal Display Corporation was founded in 1985 and is headquartered in Ewing, New Jersey.

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