Analyzing Universal Display (NASDAQ:OLED) and QuickLogic (NASDAQ:QUIK)

QuickLogic (NASDAQ:QUIK) and Universal Display (NASDAQ:OLED) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, dividends, earnings and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
QuickLogic	-80.18%	-45.22%	-27.93%
Universal Display	32.24%	11.35%	10.17%

Risk & Volatility

QuickLogic has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, Universal Display has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500.

Institutional and Insider Ownership

31.5% of QuickLogic shares are held by institutional investors. Comparatively, 78.2% of Universal Display shares are held by institutional investors. 3.2% of QuickLogic shares are held by insiders. Comparatively, 2.2% of Universal Display shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for QuickLogic and Universal Display, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QuickLogic	1	1	2	0	2.25
Universal Display	1	4	3	0	2.25

QuickLogic currently has a consensus price target of $21.00, suggesting a potential upside of 82.77%. Universal Display has a consensus price target of $116.33, suggesting a potential upside of 46.04%. Given QuickLogic’s higher possible upside, analysts plainly believe QuickLogic is more favorable than Universal Display.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QuickLogic	$13.77 million	15.29	-$14.82 million	($0.77)	-14.92
Universal Display	$650.61 million	5.63	$242.07 million	$4.13	19.29

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

Summary

Universal Display beats QuickLogic on 10 of the 13 factors compared between the two stocks.

About QuickLogic

QuickLogic Corporation operates as a fabless semiconductor company in the United States. The company offers embedded FPGA intellectual property, low power, multicore semiconductor system-on-chips, discrete FPGAs, and AI software; and end-to-end artificial intelligence/machine learning solution with accurate sensor algorithms using AI technology. It provides various platforms, such as software tools and eFPGA IP enables the adoption of AI, voice, and sensor processing across aerospace, and defense, consumer/industrial IOT, and consumer electronics markets. In addition, the company engages in the eFPGA IP Licensing business consisting of development and integration of eFPGA technology into custom semiconductor solutions. Further, the company offers silicon products, such as EOS, QuickAI, ArcticLink III, PolarPro 3, PolarPro II, PolarPro, and Eclipse II products; and PASIC 3 and QuickRAM, as well as programming hardware and design software services. The company markets and sells its products to defense industrial base contractors, U.S. government entities, system OEMs, and fabless semiconductor companies through a network of sales managers and distributors in North America, Europe, and the Asia Pacific. It has a strategic partnership with YorChip to develop low-power unified chiplet interconnect express FPGA chiplets. The company was founded in 1988 and is headquartered in San Jose, California.

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.