Critical Contrast: LG Display (NYSE:LPL) versus Bel Fuse (NASDAQ:BELFA)

Bel Fuse (NASDAQ:BELFA) and LG Display (NYSE:LPL) are both mid-cap technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, risk, institutional ownership, earnings and analyst recommendations.

Valuation and Earnings

This table compares Bel Fuse and LG Display”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bel Fuse	$675.46 million	4.40	$61.54 million	$3.91	52.66
LG Display	$18.16 billion	0.18	$212.66 million	($0.91)	-3.59

LG Display has higher revenue and earnings than Bel Fuse. LG Display is trading at a lower price-to-earnings ratio than Bel Fuse, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Bel Fuse and LG Display’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bel Fuse	7.21%	20.55%	11.02%
LG Display	-5.26%	-19.82%	-4.88%

Risk & Volatility

Bel Fuse has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500. Comparatively, LG Display has a beta of 1.71, indicating that its stock price is 71% more volatile than the S&P 500.

Institutional & Insider Ownership

6.0% of Bel Fuse shares are held by institutional investors. 4.8% of Bel Fuse shares are held by company insiders. Comparatively, 0.0% of LG Display shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Bel Fuse and LG Display, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bel Fuse	0	1	1	0	2.50
LG Display	2	1	0	0	1.33

Bel Fuse currently has a consensus price target of $250.00, suggesting a potential upside of 21.41%. Given Bel Fuse’s stronger consensus rating and higher probable upside, research analysts clearly believe Bel Fuse is more favorable than LG Display.

Summary

Bel Fuse beats LG Display on 11 of the 14 factors compared between the two stocks.

About Bel Fuse

Bel Fuse Inc. designs, manufactures, markets, and sells products that power, protect, and connect electronic circuits. The company's products are used in the networking, telecommunications, computing, general industrial, high-speed data transmission, military, commercial aerospace, transportation, and e-Mobility industries. It provides power solutions and protection products, including front-end power supplies, board-mount power products, industrial and transportation power products, external power products, and circuit protection products. The company also offers connectivity solutions, such as expanded beam fiber optic connectors, cable assemblies, and active optical devices; copper-based connectors/cable assemblies; radio frequency connectors, cable assemblies, microwave devices, and low loss cables; and ethernet, I/O, and industrial and power connectivity products. In addition, it provides magnetic solutions comprising integrated connector modules, power transformers, SMD power inductors and SMPS transformers, and ethernet discrete components. The company sells its products through direct strategic account managers, regional sales managers working with independent sales representative organizations, and authorized distributors in the United States, the People's Republic of China, Macao, the United Kingdom, Slovakia, Germany, India, Switzerland, and internationally. Bel Fuse Inc. was incorporated in 1949 and is headquartered in West Orange, New Jersey.

About LG Display

LG Display Co., Ltd., together with its subsidiaries, engages in the manufacture and sale of thin-film transistor liquid crystal display (TFT-LCD) and organic light emitting diode (OLED) technology-based display panels. Its TFT-LCD and OLED technology-based display panels are primarily used in televisions, notebook computers, desktop monitors, tablet computers, mobile devices, and automotive displays. The company also provides display panels for industrial and other applications, including entertainment systems, portable navigation devices, and medical diagnostic equipment. In addition, it provides janitorial services; invests in venture business and acquire technologies; and manages intellectual property. The company operates in Korea, China, rest of Asia, the Americas, Poland, and rest of Europe. LG Display Co., Ltd. was formerly known as LG.Philips LCD Co., Ltd. and changed its name to LG Display Co., Ltd. in March 2008. The company was incorporated in 1985 and is headquartered in Seoul, South Korea.