Universal Display Corporation (OLED) vs. Skyworks Solutions (SWKS) Financial Contrast
Universal Display Corporation (NASDAQ: OLED) and Skyworks Solutions (NASDAQ:SWKS) are both mid-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitability and analyst recommendations.
Universal Display Corporation pays an annual dividend of $0.12 per share and has a dividend yield of 0.1%. Skyworks Solutions pays an annual dividend of $1.28 per share and has a dividend yield of 1.3%. Universal Display Corporation pays out 6.9% of its earnings in the form of a dividend. Skyworks Solutions pays out 24.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
This is a breakdown of current recommendations for Universal Display Corporation and Skyworks Solutions, as reported by MarketBeat.com.
|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 price target of $115.43, suggesting a potential upside of 3.85%. Skyworks Solutions has a consensus price target of $109.83, suggesting a potential upside of 7.69%. Given Skyworks Solutions’ stronger consensus rating and higher probable upside, analysts plainly believe Skyworks Solutions is more favorable than Universal Display Corporation.
This table compares Universal Display Corporation and Skyworks Solutions’ 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%|
Earnings & Valuation
This table compares Universal Display Corporation and Skyworks Solutions’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Universal Display Corporation||$262.87 million||19.89||$131.26 million||$1.73||64.25|
|Skyworks Solutions||$3.50 billion||5.35||$1.45 billion||$5.21||19.57|
Skyworks Solutions has higher revenue and earnings than Universal Display Corporation. Skyworks Solutions 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.
Insider and Institutional Ownership
67.5% of Universal Display Corporation shares are held by institutional investors. Comparatively, 81.3% of Skyworks Solutions shares are held by institutional investors. 5.7% of Universal Display Corporation shares are held by company insiders. Comparatively, 0.5% of Skyworks Solutions shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Risk & Volatility
Universal Display Corporation has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, Skyworks Solutions has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500.
Skyworks Solutions beats Universal Display Corporation on 11 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 Skyworks Solutions
Skyworks Solutions Inc. designs, develops, manufactures and markets semiconductor products, including intellectual property. The Company’s analog semiconductors are connecting people, places, and things, spanning a number of new and unimagined applications within the automotive, broadband, cellular infrastructure, connected home, industrial, medical, military, smartphone, tablet and wearable markets. Its geographical segments include the United States, Other Americas, China, Taiwan, South Korea, Other Asia-Pacific, Europe, Middle East and Africa. It operates throughout the world with engineering, manufacturing, sales and service facilities throughout Asia, Europe and North America. It is engaged with key original equipment manufacturers (OEM), smartphone providers and baseband reference design partners. Its product portfolio consists of various solutions, including amplifiers, attenuators, detectors, diodes, filters, front-end modules, hybrid, mixers, switches, and modulators.
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