Head to Head Analysis: Universal Display (OLED) vs. Cirrus Logic (CRUS)

Universal Display (NASDAQ: OLED) and Cirrus Logic (NASDAQ:CRUS) are both mid-cap technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, dividends, profitability, earnings and risk.

Dividends

Universal Display pays an annual dividend of $0.12 per share and has a dividend yield of 0.1%. Cirrus Logic does not pay a dividend. Universal Display pays out 5.7% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Universal Display and Cirrus Logic’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Universal Display $198.89 million 46.08 $48.07 million $2.09 93.23
Cirrus Logic $1.54 billion 2.19 $261.20 million $4.09 12.96

Cirrus Logic has higher revenue and earnings than Universal Display. Cirrus Logic is trading at a lower price-to-earnings ratio than Universal Display, indicating that it is currently the more affordable of the two stocks.

Profitability

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

Net Margins Return on Equity Return on Assets
Universal Display 32.92% 16.67% 14.26%
Cirrus Logic 17.11% 25.37% 20.51%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Universal Display and Cirrus Logic, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Universal Display 0 7 5 0 2.42
Cirrus Logic 2 3 9 0 2.50

Universal Display currently has a consensus target price of $157.78, suggesting a potential downside of 19.03%. Cirrus Logic has a consensus target price of $67.55, suggesting a potential upside of 27.42%. Given Cirrus Logic’s stronger consensus rating and higher possible upside, analysts clearly believe Cirrus Logic is more favorable than Universal Display.

Insider and Institutional Ownership

64.9% of Universal Display shares are owned by institutional investors. Comparatively, 89.3% of Cirrus Logic shares are owned by institutional investors. 5.2% of Universal Display shares are owned by company insiders. Comparatively, 1.9% of Cirrus Logic shares are owned 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.

Summary

Cirrus Logic beats Universal Display on 10 of the 15 factors compared between the two stocks.

About Universal Display

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 Cirrus Logic

Cirrus Logic, Inc. is engaged in providing integrated circuits (ICs) for audio and voice signal processing applications. The Company develops analog and mixed-signal ICs for a range of customers. The Company offers two product lines: Portable Audio, and Non-Portable Audio and Other. The Company’s primary facility housing engineering, sales and marketing, and administration functions is located in Austin, Texas. The Company offers products through both direct and indirect sales channels across the world. The Company’s portable audio products include analog and mixed-signal components designed for mobile devices including smartphones, tablets, digital headsets, wearables, smart accessories and portable media players. Its non-portable audio and other products include analog and mixed-signal components targeting the consumer market, including smart home applications, and the automotive, energy and industrial markets.

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