Comparing Corning (NYSE:GLW) & LG Display Co. (LPL)

Corning (NYSE: GLW) and LG Display Co. (NYSE:LPL) are both mid-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitabiliy, institutional ownership, dividends and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Corning and LG Display Co., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Corning 1 9 4 0 2.21
LG Display Co. 4 1 2 0 1.71

Corning currently has a consensus target price of $27.29, suggesting a potential downside of 6.70%. LG Display Co. has a consensus target price of $16.79, suggesting a potential upside of 22.47%. Given LG Display Co.’s higher probable upside, analysts clearly believe LG Display Co. is more favorable than Corning.

Dividends

Corning pays an annual dividend of $0.62 per share and has a dividend yield of 2.1%. LG Display Co. does not pay a dividend. Corning pays out 27.9% of its earnings in the form of a dividend. Corning has raised its dividend for 6 consecutive years.

Institutional and Insider Ownership

72.8% of Corning shares are owned by institutional investors. Comparatively, 4.0% of LG Display Co. shares are owned by institutional investors. 0.6% of Corning shares are owned 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Corning 24.16% 11.67% 6.52%
LG Display Co. 6.16% 12.08% 6.59%

Earnings and Valuation

This table compares Corning and LG Display Co.’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Corning $9.85 billion 2.68 $2.77 billion $2.22 13.18
LG Display Co. $25.26 billion 0.39 $4.95 billion N/A N/A

LG Display Co. has higher revenue and earnings than Corning.

Risk & Volatility

Corning has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, LG Display Co. has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500.

Summary

Corning beats LG Display Co. on 10 of the 16 factors compared between the two stocks.

About Corning

Corning Incorporated is engaged in manufacturing specialty glass and ceramics. Its segments include Display Technologies, Optical Communications, Environmental Technologies, Specialty Materials, Life Sciences and All Other. The Display Technologies segment manufactures glass substrates for flat panel liquid crystal displays (LCDs). The Optical Communications segment manufactures carrier and enterprise network components for the telecommunications industry. The Environmental Technologies segment manufactures ceramic substrates and filters for automotive and diesel emission control applications. As of December 31, 2016, the Specialty Materials segment manufactured products, which provided more than 150 material formulations for glass, glass ceramics and fluoride crystals. The Life Sciences segment manufactures glass and plastic labware, equipment, media and reagents. The All Other segment consists of its Pharmaceutical Technologies business and non-LCD glass business, and among others.

About LG Display Co.

LG Display Co., Ltd. manufactures thin-film transistor liquid crystal display, organic light emitting diode and other display panel technologies. The Company manufactures display panels in a range of sizes and specifications primarily for use in televisions, notebook computers, desktop monitors, tablet computers and various other applications, including mobile devices. The Company supplies ultra-high definition television panels. It also manufactures display panels for industrial and other applications, including entertainment systems, automotive displays, portable navigation devices and medical diagnostic equipment. It operates fabrication facilities, which include separately designated sets of fabrication production lines housed in certain facilities, located in its Display Clusters in Gumi and Paju, Korea and in Guangzhou China, and approximately four separately designated sets of fabrication production lines housed in certain facilities.

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