Universal Display (NASDAQ:OLED – Get Free Report) and Synaptics (NASDAQ:SYNA – Get Free Report) are both mid-cap technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, earnings, valuation and dividends.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Universal Display and Synaptics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Universal Display | 2 | 3 | 3 | 0 | 2.12 |
| Synaptics | 1 | 10 | 2 | 1 | 2.21 |
Universal Display presently has a consensus price target of $114.00, indicating a potential upside of 56.38%. Synaptics has a consensus price target of $123.09, indicating a potential upside of 3.37%. Given Universal Display’s higher possible upside, analysts plainly believe Universal Display is more favorable than Synaptics.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Universal Display | 32.24% | 11.35% | 10.17% |
| Synaptics | -41.00% | 4.37% | 2.27% |
Valuation and Earnings
This table compares Universal Display and Synaptics”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Universal Display | $650.61 million | 5.15 | $242.07 million | $4.13 | 17.65 |
| Synaptics | $1.20 billion | 3.95 | -$490.80 million | ($12.65) | -9.41 |
Universal Display has higher earnings, but lower revenue than Synaptics. Synaptics is trading at a lower price-to-earnings ratio than Universal Display, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Universal Display has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500. Comparatively, Synaptics has a beta of 1.96, meaning that its share price is 96% more volatile than the S&P 500.
Insider and Institutional Ownership
78.2% of Universal Display shares are owned by institutional investors. Comparatively, 99.4% of Synaptics shares are owned by institutional investors. 2.2% of Universal Display shares are owned by company insiders. Comparatively, 0.7% of Synaptics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Universal Display beats Synaptics on 10 of the 15 factors compared between the two stocks.
About Universal Display
Universal Display Corporation engages in the research, development, and commercialization of organic light emitting diode (OLED) technologies and materials for use in display and solid-state lighting applications in the United States and internationally. The company offers PHOLED technologies and materials for displays and lighting products under the UniversalPHOLED brand. It is also involved in the research, development, and commercialization of other OLED device and manufacturing technologies, including FOLED that are flexible OLEDs for the fabrication of OLEDs on flexible substrates; and OVJP, an organic vapor jet printing technology. In addition, the company provides technology development and support services, including third-party collaboration and support to third parties for the commercialization of their OLED products; and contract research services in the areas of chemical synthesis research, development, and commercialization for non-OLED applications, as well as engages in the intellectual property and technology licensing activities. Universal Display Corporation was founded in 1985 and is headquartered in Ewing, New Jersey.
About Synaptics
Synaptics Incorporated develops, markets, and sells semiconductor products worldwide. The company offers AudioSmart for voice and audio processing; ConnectSmart for high-speed video/audio/data connectivity; DisplayLink for transmitting compressed video frames across low bandwidth connections; VideoSmart that enables set-top boxes, over-the-top, streaming devices, soundbars, surveillance cameras, and smart displays; and ImagingSmart solutions. It also provides Natural ID, a fingerprint ID product that is used in notebook personal computers (PCs), PC peripherals, automobiles, and other applications; TouchPad, a touch-sensitive pad that senses the position and movement of one or more fingers on its surface; SecurePad that integrates fingerprint sensor directly into the TouchPad area; ClickPad that offers a clickable mechanical design; and ForcePad. In addition, the company offers ClearPad, which enables users to interact directly with the display on mobile smartphones, tablets, and automobiles; ClearView products that provide advanced image processing and low power technology for displays on smartphones and tablets; and TouchView products, a touch controller and display driver integration product. Further, it provides TouchPad with a pointing stick in a single notebook computer enabling users to select their interface of choice; TouchStyk, a self-contained pointing stick module; ultra-low power edge artificial intelligence platform for battery powered wireless devices; wireless connectivity solutions comprising Wi-Fi, Bluetooth, global positioning system, global navigation satellite system, and ULE; and voice over IP and digital enhanced cordless telecommunications solutions. The company sells its products through direct sales, outside sales representatives, distributors, and resellers to mobile and PC OEMs; IoT OEMs; and automotive and consumer electronics manufacturers. The company was incorporated in 1986 and is headquartered in San Jose, California.
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