NeoPhotonics (NYSE: NPTN) and Universal Display (NASDAQ:OLED) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.
Institutional and Insider Ownership
81.1% of NeoPhotonics shares are held by institutional investors. Comparatively, 65.0% of Universal Display shares are held by institutional investors. 17.3% of NeoPhotonics shares are held by insiders. Comparatively, 5.2% of Universal Display shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This is a summary of current recommendations for NeoPhotonics and Universal Display, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
NeoPhotonics currently has a consensus target price of $8.67, suggesting a potential upside of 27.45%. Universal Display has a consensus target price of $150.56, suggesting a potential downside of 11.18%. Given NeoPhotonics’ stronger consensus rating and higher possible upside, research analysts clearly believe NeoPhotonics is more favorable than Universal Display.
Volatility & Risk
NeoPhotonics has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500. Comparatively, Universal Display has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.
Universal Display pays an annual dividend of $0.12 per share and has a dividend yield of 0.1%. NeoPhotonics does not pay a dividend. Universal Display pays out 5.9% of its earnings in the form of a dividend.
This table compares NeoPhotonics and Universal Display’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares NeoPhotonics and Universal Display’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Universal Display||$198.89 million||40.09||$48.07 million||$2.04||83.09|
Universal Display has lower revenue, but higher earnings than NeoPhotonics. NeoPhotonics is trading at a lower price-to-earnings ratio than Universal Display, indicating that it is currently the more affordable of the two stocks.
NeoPhotonics beats Universal Display on 8 of the 15 factors compared between the two stocks.
NeoPhotonics Corporation develops, manufactures and markets optoelectronic products that transmit, receive and switch digital optical signals for communications networks. The Company develops and manufactures Transmitter Products, Receiver Products and Switch Products that are used in ultra-high speed digital optical communications, high speed switching and provisioning, and access connections for wireless and fiber-to-the-home communications networks. The Company’s products are categorized into groups, including High Speed Products and Network Products and Solutions. The High Speed Products includes products designed for 100G and beyond for telecommunication and datacenter or content provider networks and applications. Its Network Products and Solutions consist of various products designed for applications below 100G, and include 40G products. The Company combines its transmitter and receiver products into Transceiver modules.
About Universal Display
Universal Display Corporation is engaged in the research, development and commercialization of organic light emitting diode (OLED), technologies and materials for use in display and solid-state lighting applications. The Company also supplies its OLED materials to manufacturers of OLED displays and lighting products for evaluation and for use in product development and for pre-commercial activities, and it also provides technical assistance and support to these manufacturers. The Company has produced and sold phosphorescent emitter materials that produce red, yellow, green and light-blue light, which are combined in various ways for the display and lighting markets. It has also developed host materials for the emissive layer. The Company is a supplier of phosphorescent emitter materials to OLED product manufacturers. Phosphorescent OLEDs utilize specialized materials and device structures that allow OLEDs to emit light through a process known as phosphorescence.
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