Universal Display (NASDAQ:OLED) vs. TE Connectivity (NYSE:TEL) Head to Head Analysis

Universal Display (NASDAQ:OLED) and TE Connectivity (NYSE:TEL) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.

Valuation & Earnings

This table compares Universal Display and TE Connectivity”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Display	$650.61 million	7.21	$242.07 million	$5.07	19.64
TE Connectivity	$17.26 billion	4.19	$1.84 billion	$6.93	35.55

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Universal Display	37.21%	14.07%	12.56%
TE Connectivity	11.41%	22.72%	11.47%

Dividends

Universal Display pays an annual dividend of $2.00 per share and has a dividend yield of 2.0%. TE Connectivity pays an annual dividend of $2.84 per share and has a dividend yield of 1.2%. Universal Display pays out 39.4% of its earnings in the form of a dividend. TE Connectivity pays out 41.0% 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 and TE Connectivity has raised its dividend for 12 consecutive years. Universal Display is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

78.2% of Universal Display shares are held by institutional investors. Comparatively, 91.4% of TE Connectivity shares are held by institutional investors. 2.0% of Universal Display shares are held by company insiders. Comparatively, 0.6% of TE Connectivity shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Universal Display and TE Connectivity, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Display	0	3	2	0	2.40
TE Connectivity	0	5	12	1	2.78

Universal Display currently has a consensus target price of $143.33, indicating a potential upside of 43.98%. TE Connectivity has a consensus target price of $246.33, indicating a potential downside of 0.02%. Given Universal Display’s higher possible upside, equities analysts clearly believe Universal Display is more favorable than TE Connectivity.

Volatility & Risk

Universal Display has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500. Comparatively, TE Connectivity has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.

Summary

TE Connectivity beats Universal Display on 10 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 TE Connectivity

TE Connectivity Ltd., together with its subsidiaries, manufactures and sells connectivity and sensor solutions in Europe, the Middle East, Africa, the AsiaPacific, and the Americas. The company operates through three segments: Transportation Solutions, Industrial Solutions, and Communications Solutions. The Transportation Solutions segment provides terminals and connector systems and components, sensors, relays, antennas, and application tooling products for use in the automotive, commercial transportation, and sensor markets. The Industrial Solutions segment offers terminals and connector systems and components; and interventional medical components, relays, heat shrink tubing, and wires and cables for industrial equipment, aerospace, defense, marine, medical, and energy markets. The Communications Solutions segment supplies electronic components, such as terminals and connector systems and components, relays, heat shrink tubing, and antennas for the data and devices, and appliances markets. The company sells its products to approximately 140 countries primarily through direct sales to manufacturers, as well as through third-party distributors. The company was formerly known as Tyco Electronics Ltd. and changed its name to TE Connectivity Ltd. in March 2011. TE Connectivity Ltd. was founded in 1941 and is based in Schaffhausen, Switzerland.