Amkor Technology (NASDAQ:AMKR – Get Free Report) and Universal Display (NASDAQ:OLED – Get Free Report) are both mid-cap technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.
Dividends
Amkor Technology pays an annual dividend of $0.33 per share and has a dividend yield of 0.9%. Universal Display pays an annual dividend of $2.00 per share and has a dividend yield of 2.2%. Amkor Technology pays out 13.3% of its earnings in the form of a dividend. Universal Display pays out 40.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Amkor Technology has increased its dividend for 4 consecutive years and Universal Display has increased its dividend for 8 consecutive years. Universal Display is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings and Valuation
This table compares Amkor Technology and Universal Display”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Amkor Technology | $7.46 billion | 1.24 | $373.89 million | $2.48 | 15.06 |
| Universal Display | $650.61 million | 6.23 | $242.07 million | $4.93 | 18.28 |
Amkor Technology has higher revenue and earnings than Universal Display. Amkor Technology is trading at a lower price-to-earnings ratio than Universal Display, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Amkor Technology and Universal Display, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Amkor Technology | 1 | 5 | 5 | 0 | 2.36 |
| Universal Display | 1 | 4 | 3 | 0 | 2.25 |
Amkor Technology currently has a consensus price target of $62.12, suggesting a potential upside of 66.39%. Universal Display has a consensus price target of $114.00, suggesting a potential upside of 26.52%. Given Amkor Technology’s stronger consensus rating and higher probable upside, analysts plainly believe Amkor Technology is more favorable than Universal Display.
Profitability
This table compares Amkor Technology and Universal Display’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Amkor Technology | 8.30% | 13.32% | 6.85% |
| Universal Display | 36.74% | 12.20% | 10.90% |
Insider & Institutional Ownership
42.8% of Amkor Technology shares are held by institutional investors. Comparatively, 78.2% of Universal Display shares are held by institutional investors. 26.4% of Amkor Technology shares are held by insiders. Comparatively, 2.2% of Universal Display shares are held by 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.
Volatility & Risk
Amkor Technology has a beta of 2.39, indicating that its stock price is 139% more volatile than the S&P 500. Comparatively, Universal Display has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500.
Summary
Amkor Technology beats Universal Display on 9 of the 17 factors compared between the two stocks.
About Amkor Technology
Amkor Technology is a provider of outsourced semiconductor packaging and test services. It works with semiconductor companies to assemble and test integrated circuits before they are incorporated into electronic products. Its services include advanced packaging, wafer bumping, flip-chip packaging, wafer-level packaging, system-in-package solutions, and semiconductor testing. These technologies support applications in markets such as communications, automotive, computing, and consumer electronics.
About Universal Display
Universal Display Corporation develops and commercializes technologies and materials used in organic light-emitting diode (OLED) displays and lighting. Its business focuses on licensing its OLED-related intellectual property and selling proprietary OLED materials to manufacturers and other industry participants. The company is known for its phosphorescent OLED technology, marketed as UniversalPHOLED, which enables OLED devices to produce light efficiently. Its offerings include phosphorescent emitter materials and related technologies, supported by ongoing research and development.
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