Head-To-Head Review: LG Display (NYSE:LPL) versus Advantest (OTCMKTS:ATEYY)

Advantest (OTCMKTS:ATEYY) and LG Display (NYSE:LPL) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, dividends, risk and profitability.

Analyst Recommendations

This is a breakdown of current recommendations for Advantest and LG Display, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Advantest	0	1	0	1	3.00
LG Display	1	1	0	0	1.50

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Advantest	39.57%	67.22%	45.56%
LG Display	-5.26%	-19.82%	-4.88%

Institutional and Insider Ownership

0.0% of Advantest shares are held by institutional investors. 0.0% of LG Display shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Advantest has a beta of 2.32, suggesting that its stock price is 132% more volatile than the S&P 500. Comparatively, LG Display has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500.

Earnings and Valuation

This table compares Advantest and LG Display”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Advantest	$7.50 billion	18.63	$2.48 billion	$4.99	38.24
LG Display	$18.16 billion	0.14	$212.66 million	($0.91)	-2.83

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

Summary

Advantest beats LG Display on 10 of the 12 factors compared between the two stocks.

About Advantest

Advantest Corporation is a Japanese technology company that develops and manufactures test equipment used in the semiconductor industry. Its systems help customers evaluate semiconductor devices during production, supporting quality control and the development of increasingly complex chips. The company’s offerings include automated test equipment for system-on-chip and memory devices, as well as handlers and related products that move and connect devices during testing. Advantest also provides test solutions for electronic components and services that support its equipment.

About LG Display

LG Display Co., Ltd. is a South Korean manufacturer of display panels used in televisions, computers, mobile devices, vehicles and commercial products. Its portfolio includes OLED and LCD technologies, with products supplied to electronics makers and other businesses. The company traces its roots to the Goldstar era and began producing TFT-LCD panels in the 1990s. It has since expanded its offerings to include OLED panels for televisions and other devices, as well as display solutions for automotive and information-technology applications.