Financial Survey: IQE (OTCMKTS:IQEPF) & Universal Display (NASDAQ:OLED)

by · The Cerbat Gem

Universal Display (NASDAQ:OLEDGet Free Report) and IQE (OTCMKTS:IQEPFGet Free Report) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, profitability, earnings, dividends, institutional ownership, analyst recommendations and risk.

Volatility & 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.

Institutional & Insider Ownership

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

Earnings and Valuation

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

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Universal Display$650.61 million6.07$242.07 million$4.1320.78
IQE$128.31 million4.63-$48.39 millionN/AN/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 MarginsReturn on EquityReturn on Assets
Universal Display32.24%11.35%10.17%
IQEN/AN/AN/A

Analyst Ratings

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

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Universal Display14302.25
IQE00203.00

Universal Display currently has a consensus target price of $116.33, indicating a potential upside of 35.52%. Given Universal Display’s higher probable upside, equities research analysts clearly 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

(Get Free Report)

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

(Get Free Report)

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.