Universal Display (NASDAQ:OLED) & Omron (OTCMKTS:OMRNY) Financial Review

Universal Display (NASDAQ:OLED) and Omron (OTCMKTS:OMRNY) are both mid-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, dividends, earnings, profitability, valuation, institutional ownership and risk.

Institutional and Insider Ownership

78.2% of Universal Display shares are held by institutional investors. Comparatively, 1.1% of Omron shares are held by institutional investors. 2.0% of Universal Display shares are held 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Universal Display	36.95%	15.82%	13.99%
Omron	4.04%	3.46%	2.39%

Dividends

Universal Display pays an annual dividend of $1.80 per share and has a dividend yield of 1.2%. Omron pays an annual dividend of $0.61 per share and has a dividend yield of 2.1%. Universal Display pays out 35.2% of its earnings in the form of a dividend. Omron pays out 55.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Universal Display has raised its dividend for 8 consecutive years.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Display	$647.68 million	10.79	$222.08 million	$5.12	28.71
Omron	$5.26 billion	1.14	$107.39 million	$1.11	26.33

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

Analyst Recommendations

This is a summary of current ratings for Universal Display and Omron, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Display	0	3	5	1	2.78
Omron	0	0	0	0	0.00

Universal Display presently has a consensus target price of $190.43, suggesting a potential upside of 29.53%. Given Universal Display’s stronger consensus rating and higher possible upside, equities analysts plainly believe Universal Display is more favorable than Omron.

Volatility & Risk

Universal Display has a beta of 1.55, meaning that its share price is 55% more volatile than the S&P 500. Comparatively, Omron has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.

Summary

Universal Display beats Omron on 16 of the 18 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 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.

About Omron

OMRON Corporation engages in industrial automation, device and module solutions, social systems, and healthcare businesses worldwide. The Industrial Automation Business offers sensors, switches, safety and control components, relays, motion and drives, robotics, energy conservation, power supplies, and automation system products. It also offers environmental mobility, digital devices, food and commodity, logistic and warehouse automation, medical, robotic, panel, vision, software, and traceability related solutions. The Social Systems, Solutions and Service Business provides energy, public transport, traffic safety, network protection, payment, infrastructure monitoring, management service, and DX solutions, as well as offers remote surveillance/monitoring, automation/robotics, software development, engineering/maintenance, and other services. The Healthcare Business provides cardiovascular, respiratory care, pain management, remote patient monitoring, and other solutions. The Device and Module Solutions Business offers relays, switches, connectors, and sensors. OMRON Corporation was founded in 1933 and is headquartered in Kyoto, Japan.