Critical Analysis: Universal Display Corporation (OLED) and TTM Technologies (TTMI)
Universal Display Corporation (NASDAQ: OLED) and TTM Technologies (NASDAQ:TTMI) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.
Universal Display Corporation pays an annual dividend of $0.12 per share and has a dividend yield of 0.1%. TTM Technologies does not pay a dividend. Universal Display Corporation pays out 6.9% of its earnings in the form of a dividend.
Volatility and Risk
Universal Display Corporation has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, TTM Technologies has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500.
Earnings and Valuation
This table compares Universal Display Corporation and TTM Technologies’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Universal Display Corporation||$262.87 million||19.94||$131.26 million||$1.73||64.42|
|TTM Technologies||$2.60 billion||0.51||$395.21 million||$0.72||18.22|
TTM Technologies has higher revenue and earnings than Universal Display Corporation. TTM Technologies is trading at a lower price-to-earnings ratio than Universal Display Corporation, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
69.4% of Universal Display Corporation shares are held by institutional investors. Comparatively, 95.2% of TTM Technologies shares are held by institutional investors. 5.7% of Universal Display Corporation shares are held by company insiders. Comparatively, 28.4% of TTM Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This table compares Universal Display Corporation and TTM Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Universal Display Corporation||31.15%||14.90%||12.72%|
This is a breakdown of recent recommendations and price targets for Universal Display Corporation and TTM Technologies, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Universal Display Corporation||0||5||5||0||2.50|
Universal Display Corporation currently has a consensus target price of $115.43, indicating a potential upside of 3.57%. TTM Technologies has a consensus target price of $20.17, indicating a potential upside of 53.71%. Given TTM Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe TTM Technologies is more favorable than Universal Display Corporation.
TTM Technologies beats Universal Display Corporation on 10 of the 17 factors compared between the two stocks.
About Universal Display Corporation
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.
About TTM Technologies
TTM Technologies, Inc. is a manufacturer of printed circuit board (PCB) products and is focused on technologically advanced PCBs and electro-mechanical solutions (E-M Solutions). As of January 2, 2017, the Company operated a total of 25 specialized facilities in North America and China. The Company’s segments include PCB, E-M Solutions and Corporate. As of January 2, 2017, the PCB segment included 13 domestic PCB fabrication plants, including a facility that provides follow-on value-added services primarily for one of the PCB fabrication plants; eight PCB fabrication plants in China and one in Canada. As of January 2, 2017, the E-M Solutions included three custom electronic assembly plants in China. The Company offers a range of PCB products, including conventional PCBs, high density interconnect (HDI) PCBs, flexible PCBs, rigid-flex PCBs, custom assemblies and system integration, and integrated circuits (IC) substrates.
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