Head-To-Head Survey: Universal Display (NASDAQ:OLED) versus IQE (OTCMKTS:IQEPF)

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

Volatility and Risk

Universal Display has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500. Comparatively, IQE has a beta of 1.68, meaning that its stock price is 68% more volatile than the S&P 500.

Valuation & Earnings

This table compares Universal Display and IQE”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Display	$650.61 million	6.07	$242.07 million	$4.13	20.78
IQE	$128.31 million	4.63	-$48.39 million	N/A	N/A

Universal Display has higher revenue and earnings than IQE.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Universal Display	32.24%	11.35%	10.17%
IQE	N/A	N/A	N/A

Institutional & Insider Ownership

78.2% of Universal Display shares are owned by institutional investors. 2.2% of Universal Display shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Display	1	4	3	0	2.25
IQE	0	0	2	0	3.00

Universal Display currently has a consensus price target of $116.33, suggesting a potential upside of 35.52%. Given Universal Display’s higher probable upside, analysts plainly believe Universal Display is more favorable than IQE.

Summary

Universal Display beats IQE on 10 of the 12 factors compared between the two stocks.

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.

About IQE

IQE plc, together with its subsidiaries, develops, manufactures, and sells advanced semiconductor materials. It operates through three segments: Wireless, Photonics, and CMOS++. The company manufactures and sells compound semiconductor materials for the wireless market which includes radio frequency devices for wireless communications, and photonics market, that includes applications that transmit and sense visible and infrared lights, as well as advanced semiconductor materials related to silicon. It operates in the United States, rest of the Americas, France, Germany, Israel, the United Kingdom, rest of Europe, the Middle East, Africa, the People's Republic of China, Japan, Taiwan, and rest of the Asia-Pacific. The company was founded in 1988 and is headquartered in Cardiff, the United Kingdom.