Critical Contrast: Kyocera (OTCMKTS:KYOCY) & Universal Display (NASDAQ:OLED)

Kyocera (OTCMKTS:KYOCY) and Universal Display (NASDAQ:OLED) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.

Dividends

Kyocera pays an annual dividend of $0.25 per share and has a dividend yield of 1.8%. Universal Display pays an annual dividend of $1.80 per share and has a dividend yield of 1.5%. Kyocera pays out 113.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Universal Display pays out 38.8% of its earnings in the form of a dividend. Universal Display has increased its dividend for 8 consecutive years.

Volatility and Risk

Kyocera has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500. Comparatively, Universal Display has a beta of 1.62, indicating that its stock price is 62% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kyocera	2.25%	1.37%	0.99%
Universal Display	34.65%	14.10%	12.53%

Earnings & Valuation

This table compares Kyocera and Universal Display”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kyocera	$13.23 billion	1.50	$159.04 million	$0.22	63.86
Universal Display	$647.68 million	8.73	$222.08 million	$4.64	25.63

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

Insider and Institutional Ownership

7.4% of Kyocera shares are owned by institutional investors. Comparatively, 78.2% of Universal Display shares are owned by institutional investors. 2.0% of Universal Display shares are owned 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.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Kyocera and Universal Display, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kyocera	0	1	0	0	2.00
Universal Display	0	4	4	0	2.50

Universal Display has a consensus target price of $181.33, indicating a potential upside of 52.47%. Given Universal Display’s stronger consensus rating and higher probable upside, analysts plainly believe Universal Display is more favorable than Kyocera.

Summary

Universal Display beats Kyocera on 14 of the 17 factors compared between the two stocks.

About Kyocera

Kyocera Corporation develops, produces, and distributes products based on fine ceramic technologies in Japan, rest of Asia, Europe, the United States, and internationally. It operates through Core Components Business, Electronic Components Business, and Solutions Business segments. The Core Components Business segment offers components, such as fine ceramic components for semiconductor processing equipment, automotive camera modules, and ceramic packages, as well as organic packages and boards to protect electronic components and ICs to industrial machinery, automotive-related, and the information and communication-related markets; optical components, and jewelry and applied ceramic related products; and medical devices comprising prosthetic joints and dental implants. The Electronic Components Business segment provides various electronic components and devices, including capacitors, crystal devices, connectors, and power semiconductor devices for diverse fields comprising information and communications, industrial equipment, automotive-related, and consumer markets, as well as sensors and control components. The Solutions Business segment offers cutting tools, as well as pneumatic and power tools for automotive-related and general industrial, and construction markets; printers for offices; and communication terminals, such as mobile phones, as well as information systems and telecommunication services. This segment also provides MFPs, commercial inkjet printers, communication modules, displays, and printing devices, as well as information systems and telecommunication, smart energy-related products and services, and solution services, such as document management system. The company was formerly known as Kyoto Ceramic Kabushiki Kaisha and changed its name to Kyocera Corporation in 1982. Kyocera Corporation was incorporated in 1946 and is headquartered in Kyoto, Japan.

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.