Financial Review: AU Optronics Corp (AUO) & Corning (NYSE:GLW)
AU Optronics Corp (NYSE: AUO) and Corning (NYSE:GLW) are both mid-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitabiliy, risk, earnings and dividends.
Volatility & Risk
AU Optronics Corp has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500. Comparatively, Corning has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500.
Insider & Institutional Ownership
8.2% of AU Optronics Corp shares are held by institutional investors. Comparatively, 72.7% of Corning shares are held by institutional investors. 16.0% of AU Optronics Corp shares are held by company insiders. Comparatively, 0.6% of Corning shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares AU Optronics Corp and Corning’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|AU Optronics Corp||$11.41 billion||0.33||$2.28 billion||$0.75||5.20|
|Corning||$9.72 billion||3.02||$2.71 billion||$3.67||8.68|
Corning has higher revenue, but lower earnings than AU Optronics Corp. AU Optronics Corp is trading at a lower price-to-earnings ratio than Corning, indicating that it is currently the more affordable of the two stocks.
Corning pays an annual dividend of $0.62 per share and has a dividend yield of 1.9%. AU Optronics Corp does not pay a dividend. Corning pays out 16.9% of its earnings in the form of a dividend. AU Optronics Corp has increased its dividend for 6 consecutive years.
This is a breakdown of recent ratings and recommmendations for AU Optronics Corp and Corning, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|AU Optronics Corp||2||4||1||0||1.86|
AU Optronics Corp currently has a consensus price target of $4.00, suggesting a potential upside of 2.56%. Corning has a consensus price target of $27.13, suggesting a potential downside of 14.84%. Given AU Optronics Corp’s higher possible upside, analysts clearly believe AU Optronics Corp is more favorable than Corning.
This table compares AU Optronics Corp and Corning’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%|
Corning beats AU Optronics Corp on 11 of the 17 factors compared between the two stocks.
AU Optronics Corp Company Profile
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.
Corning Company Profile
Corning Incorporated is engaged in manufacturing specialty glass and ceramics. Its segments include Display Technologies, Optical Communications, Environmental Technologies, Specialty Materials, Life Sciences and All Other. The Display Technologies segment manufactures glass substrates for flat panel liquid crystal displays (LCDs). The Optical Communications segment manufactures carrier and enterprise network components for the telecommunications industry. The Environmental Technologies segment manufactures ceramic substrates and filters for automotive and diesel emission control applications. As of December 31, 2016, the Specialty Materials segment manufactured products, which provided more than 150 material formulations for glass, glass ceramics and fluoride crystals. The Life Sciences segment manufactures glass and plastic labware, equipment, media and reagents. The All Other segment consists of its Pharmaceutical Technologies business and non-LCD glass business, and among others.
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