Critical Review: Logitech International (NASDAQ:LOGI) & LG Display (NYSE:LPL)

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Logitech International and LG Display, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Logitech International	0	6	6	1	2.62
LG Display	2	4	0	0	1.67

Logitech International currently has a consensus price target of $97.00, indicating a potential downside of 14.14%. Given Logitech International’s stronger consensus rating and higher possible upside, research analysts clearly believe Logitech International is more favorable than LG Display.

Profitability

This table compares Logitech International and LG Display’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Logitech International	13.78%	30.81%	17.93%
LG Display	-2.25%	-7.60%	-1.92%

Valuation & Earnings

This table compares Logitech International and LG Display”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Logitech International	$4.55 billion	N/A	$631.53 million	$4.21	26.83
LG Display	$19.51 billion	0.28	-$1.79 billion	($0.42)	-12.85

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

Risk and Volatility

Logitech International has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, LG Display has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500.

Insider & Institutional Ownership

45.8% of Logitech International shares are owned by institutional investors. 0.2% of Logitech International shares are owned by company insiders. Comparatively, 0.0% of LG Display shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Logitech International beats LG Display on 12 of the 14 factors compared between the two stocks.

About Logitech International

Logitech International S.A., through its subsidiaries, designs, manufactures, and markets software-enabled hardware solutions that connect people to working, creating, gaming, and streaming worldwide. The company offers products for gamers and streamers, including mice, racing wheels, headsets, keyboards, microphones, and streaming services; corded and cordless keyboards and keyboard-and-mouse combinations; pointing devices, such as wireless mice and wireless mouse products; conference room cameras, such as ConferenceCams; controllers for video conferencing room solutions; PC-based webcams, including streaming cameras and VC webcams; tablet accessories that includes keyboards for tablets; PC and VC headsets, in-ear headphones, and premium wireless earbuds; and mobile speakers and PC speakers, as well as portable wireless Bluetooth speakers. It sells its products to a network of distributors, retailers, and e-tailers who resell to retailers, value-added resellers, systems integrators, and other distributors. The company sells its products under the Logitech, Logitech G, and others. Logitech International S.A. was incorporated in 1981 and is headquartered in Lausanne, Switzerland.

About LG Display

LG Display Co., Ltd., together with its subsidiaries, engages in the manufacture and sale of thin-film transistor liquid crystal display (TFT-LCD) and organic light emitting diode (OLED) technology-based display panels. Its TFT-LCD and OLED technology-based display panels are primarily used in televisions, notebook computers, desktop monitors, tablet computers, mobile devices, and automotive displays. The company also provides display panels for industrial and other applications, including entertainment systems, portable navigation devices, and medical diagnostic equipment. In addition, it provides janitorial services; invests in venture business and acquire technologies; and manages intellectual property. The company operates in Korea, China, rest of Asia, the Americas, Poland, and rest of Europe. LG Display Co., Ltd. was formerly known as LG.Philips LCD Co., Ltd. and changed its name to LG Display Co., Ltd. in March 2008. The company was incorporated in 1985 and is headquartered in Seoul, South Korea.