SemiLEDS Corporation (NASDAQ: LEDS) and Universal Display Corporation (NASDAQ:OLED) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Analyst Ratings

This is a summary of current ratings and price targets for SemiLEDS Corporation and Universal Display Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SemiLEDS Corporation 0 0 0 0 N/A
Universal Display Corporation 0 5 6 0 2.55

Universal Display Corporation has a consensus target price of $117.88, suggesting a potential downside of 10.73%. Given Universal Display Corporation’s higher possible upside, analysts clearly believe Universal Display Corporation is more favorable than SemiLEDS Corporation.

Institutional and Insider Ownership

2.1% of SemiLEDS Corporation shares are held by institutional investors. Comparatively, 64.3% of Universal Display Corporation shares are held by institutional investors. 40.1% of SemiLEDS Corporation shares are held by company insiders. Comparatively, 5.7% of Universal Display Corporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

SemiLEDS Corporation has a beta of 2.32, meaning that its share price is 132% more volatile than the S&P 500. Comparatively, Universal Display Corporation has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.

Valuation & Earnings

This table compares SemiLEDS Corporation and Universal Display Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SemiLEDS Corporation $8.53 million 0.82 -$4.18 million ($5.04) -0.39
Universal Display Corporation $262.87 million 23.63 $131.26 million $1.73 76.33

Universal Display Corporation has higher revenue and earnings than SemiLEDS Corporation. SemiLEDS Corporation 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.

Profitability

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

Net Margins Return on Equity Return on Assets
SemiLEDS Corporation -182.84% -59.70% -30.13%
Universal Display Corporation 31.15% 14.90% 12.72%

Dividends

Universal Display Corporation pays an annual dividend of $0.12 per share and has a dividend yield of 0.1%. SemiLEDS Corporation does not pay a dividend. Universal Display Corporation pays out 6.9% of its earnings in the form of a dividend.

Summary

Universal Display Corporation beats SemiLEDS Corporation on 11 of the 14 factors compared between the two stocks.

SemiLEDS Corporation Company Profile

SemiLEDs Corporation develops, manufactures and sells light emitting diode (LED) chips and LED components. The Company’s products are used primarily for general lighting applications, including street lights and commercial, industrial and residential lighting. Its LED chips may also be used in specialty industrial applications, such as ultraviolet (UV), curing of polymers, LED light therapy in medical/cosmetic applications, counterfeit detection, LED lighting for horticulture applications, architectural lighting and entertainment lighting. The Company produces a range of blue, white, green and UV LED chips, including its Enhanced Vertical (EV) LED product series, ranging from chip sizes of approximately 380 microns (um) by 380um to 1,520um by 1,520um. It designs, assembles and sells lighting fixtures and systems for general lighting applications, including commercial, residential and industrial lighting. Its lighting products consist primarily of LED luminaries and LED retrofits.

Universal Display Corporation Company Profile

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.

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