AU Optronics Corp (NYSE: AUO) and LG Display Co. (NYSE:LPL) are both mid-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitabiliy, analyst recommendations, dividends and risk.

Insider & Institutional Ownership

8.2% of AU Optronics Corp shares are held by institutional investors. Comparatively, 3.9% of LG Display Co. shares are held by institutional investors. 16.0% of AU Optronics Corp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for AU Optronics Corp and LG Display Co., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AU Optronics Corp 2 3 3 0 2.13
LG Display Co. 4 1 3 0 1.88

AU Optronics Corp presently has a consensus target price of $4.00, suggesting a potential upside of 1.52%. LG Display Co. has a consensus target price of $13.59, suggesting a potential downside of 12.66%. Given AU Optronics Corp’s stronger consensus rating and higher probable upside, equities analysts clearly believe AU Optronics Corp is more favorable than LG Display Co..

Risk & Volatility

AU Optronics Corp has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500. Comparatively, LG Display Co. has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500.

Earnings & Valuation

This table compares AU Optronics Corp and LG Display Co.’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
AU Optronics Corp $11.50 billion 0.33 $2.30 billion $0.75 5.25
LG Display Co. $24.52 billion 0.45 $4.33 billion N/A N/A

LG Display Co. has higher revenue and earnings than AU Optronics Corp.

Profitability

This table compares AU Optronics Corp and LG Display Co.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AU Optronics Corp 6.63% 11.96% 5.50%
LG Display Co. 6.16% 12.08% 6.59%

Summary

AU Optronics Corp beats LG Display Co. on 6 of the 11 factors compared between the two stocks.

About AU Optronics Corp

AU Optronics Corp. is a thin-film-transistor liquid-crystal display (TFT-LCD) panel provider. The Company operates in two business segments: display business and solar business. Through Display business segment, the Company designs, develops, manufactures, assembles and markets flat panel displays and most of its products are TFT-LCD panels. Its panels are primarily used in televisions, monitors, mobile personal computers (PCs), mobile devices and commercial and other applications (such as displays for automobiles, industrial PCs, automated teller machines, point of sale terminals and pachinko machines). Through Solar business segment, the Company is capable of manufacturing upstream and midstream products, such as ingots, solar wafers and solar cells. Through the Company’s subsidiaries AUO Crystal Corp. and M.Setek Co., Ltd. (M.Setek), it mainly focuses on research, production and sales of solar materials, such as ingots and solar wafers.

About LG Display Co.

LG Display Co., Ltd. manufactures thin-film transistor liquid crystal display, organic light emitting diode and other display panel technologies. The Company manufactures display panels in a range of sizes and specifications primarily for use in televisions, notebook computers, desktop monitors, tablet computers and various other applications, including mobile devices. The Company supplies ultra-high definition television panels. It also manufactures display panels for industrial and other applications, including entertainment systems, automotive displays, portable navigation devices and medical diagnostic equipment. It operates fabrication facilities, which include separately designated sets of fabrication production lines housed in certain facilities, located in its Display Clusters in Gumi and Paju, Korea and in Guangzhou China, and approximately four separately designated sets of fabrication production lines housed in certain facilities.

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