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

Dividends

Universal Display Corporation pays an annual dividend of $0.12 per share and has a dividend yield of 0.1%. Microsemi Communications does not pay a dividend. Universal Display Corporation pays out 6.9% of its earnings in the form of a dividend.

Insider & Institutional Ownership

64.1% of Universal Display Corporation shares are held by institutional investors. 5.7% of Universal Display Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Universal Display Corporation and Microsemi Communications’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Universal Display Corporation $262.87 million 23.74 $131.26 million $1.73 76.71
Microsemi Communications N/A N/A N/A N/A N/A

Universal Display Corporation has higher revenue and earnings than Microsemi Communications.

Analyst Ratings

This is a summary of current ratings and recommmendations for Universal Display Corporation and Microsemi Communications, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Universal Display Corporation 0 5 6 0 2.55
Microsemi Communications 0 0 0 0 N/A

Universal Display Corporation presently has a consensus target price of $119.25, suggesting a potential downside of 10.14%. Given Universal Display Corporation’s higher probable upside, research analysts plainly believe Universal Display Corporation is more favorable than Microsemi Communications.

Profitability

This table compares Universal Display Corporation and Microsemi Communications’ 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%
Microsemi Communications -20.36% -69.40% -23.46%

Summary

Universal Display Corporation beats Microsemi Communications on 9 of the 10 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 Microsemi Communications

Vitesse Semiconductor Corporation supplies high-performance integrated circuits used by manufacturers of networking systems for Carrier and Enterprise networking applications. The Company designs, develops and markets a diverse networking and connectivity IC solutions. The Company develops and manufactures variety of products that are marketed to Carrier and Enterprise networking, as well as data center infrastructure original equipment manufacturers. The Company’s product lines include Ethernet Switching Product Line that addresses Gigabit Ethernet and 10 Gigabit Ethernet applications in Carrier and Enterprise markets; Connectivity Product Line includes mixed-signal physical layer devices for connection of systems via optical fiber, copper cable, or backplanes and Transport Processing Product Line addresses the needs of Carrier network providers as they undergo a migration to new Ethernet packet-based networks.

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