Contrasting Universal Display (NASDAQ:OLED) & Stoneridge (NYSE:SRI)

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Universal Display and Stoneridge, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Display	0	3	2	0	2.40
Stoneridge	1	2	0	0	1.67

Universal Display currently has a consensus target price of $143.33, indicating a potential upside of 43.89%. Stoneridge has a consensus target price of $16.00, indicating a potential upside of 128.08%. Given Stoneridge’s higher probable upside, analysts clearly believe Stoneridge is more favorable than Universal Display.

Profitability

This table compares Universal Display and Stoneridge’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%
Stoneridge	-11.94%	-13.49%	-5.14%

Valuation and Earnings

This table compares Universal Display and Stoneridge”s 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	19.65
Stoneridge	$861.26 million	0.23	-$102.83 million	($3.70)	-1.90

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

Institutional & Insider Ownership

78.2% of Universal Display shares are held by institutional investors. Comparatively, 98.1% of Stoneridge shares are held by institutional investors. 2.0% of Universal Display shares are held by insiders. Comparatively, 2.9% of Stoneridge shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Universal Display has a beta of 1.65, suggesting that its stock price is 65% more volatile than the S&P 500. Comparatively, Stoneridge has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500.

Summary

Universal Display beats Stoneridge on 10 of the 14 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 Stoneridge

Stoneridge, Inc., together with its subsidiaries, designs and manufactures engineered electrical and electronic systems, components, and modules for the automotive, commercial, off-highway, motorcycle, and agricultural vehicle markets in North America, South America, Europe, and internationally. The company operates through three segments: Control Devices, Electronics, and Stoneridge Brazil. The Control Devices segment offers actuators, sensors, switches, actuators, and connectors that monitor, measure, or activate specific functions within a vehicle. The Electronics segment designs and manufactures driver information systems, vision and safety systems, connectivity and compliance products, and electronic control units. Its products collect, store, and display vehicle information, such as speed, pressure, maintenance data, trip information, operator performance, temperature, distance traveled, and driver messages related to vehicle performance. This segment also offers electronic control units that regulate, coordinate, monitor, and direct the operation of the electrical system within a vehicle. The Stoneridge Brazil segment designs, manufactures, and sells vehicle tracking devices and monitoring services; vehicle security alarms and convenience accessories, including parking sensors and rearview cameras; in-vehicle audio and infotainment devices; and driver information systems and telematics solutions. The company provides its products and systems to various original equipment manufacturers and tier 1 customers, as well as aftermarket distributors. Stoneridge, Inc. was founded in 1965 and is headquartered in Novi, Michigan.