Head to Head Analysis: Amkor Technology (NASDAQ:AMKR) versus Universal Display (NASDAQ:OLED)

Universal Display (NASDAQ:OLED) and Amkor Technology (NASDAQ:AMKR) are both mid-cap technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Valuation and Earnings

This table compares Universal Display and Amkor Technology”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Display	$627.73 million	6.42	$242.07 million	$4.93	18.17
Amkor Technology	$6.71 billion	1.32	$373.89 million	$2.48	14.38

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.

Institutional & Insider Ownership

78.2% of Universal Display shares are owned by institutional investors. Comparatively, 42.8% of Amkor Technology shares are owned by institutional investors. 2.2% of Universal Display shares are owned by insiders. Comparatively, 26.4% of Amkor Technology shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Universal Display and Amkor Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Display	2	3	3	0	2.12
Amkor Technology	1	5	5	0	2.36

Universal Display presently has a consensus price target of $114.00, suggesting a potential upside of 27.27%. Amkor Technology has a consensus price target of $62.50, suggesting a potential upside of 75.27%. Given Amkor Technology’s stronger consensus rating and higher probable upside, analysts clearly believe Amkor Technology is more favorable than Universal Display.

Dividends

Universal Display pays an annual dividend of $2.00 per share and has a dividend yield of 2.2%. Amkor Technology pays an annual dividend of $0.33 per share and has a dividend yield of 0.9%. Universal Display pays out 40.6% of its earnings in the form of a dividend. Amkor Technology pays out 13.3% 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. Universal Display has increased its dividend for 8 consecutive years and Amkor Technology has increased its dividend for 4 consecutive years. Universal Display is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Universal Display has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500. Comparatively, Amkor Technology has a beta of 2.39, indicating that its stock price is 139% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Universal Display	36.74%	12.20%	10.90%
Amkor Technology	8.30%	13.32%	6.85%

Summary

Amkor Technology beats Universal Display on 9 of the 17 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 Amkor Technology

Amkor Technology, Inc. provides outsourced semiconductor packaging and test services in the United States, Japan, Europe, the Middle East, Africa, and the Asia Pacific. It offers turnkey packaging and test services, including semiconductor wafer bump, wafer probe, wafer back-grind, package design, packaging, system-level and final test, and drop shipment services; flip chip scale package products for smartphones, tablets, and other mobile consumer electronic devices; flip chip stacked chip scale packages that are used to stack memory digital baseband, and as applications processors in mobile devices; flip-chip ball grid array packages for various networking, storage, computing, automotive, and consumer applications; and memory products for system memory or platform data storage. The company also provides wafer-level CSP packages for power management, transceivers, sensors, wireless charging, codecs, radar, and specialty silicon; wafer-level fan-out packages used in power management, transceivers, radar, and specialty silicon; silicon wafer integrated fan-out technology that replaces a laminate substrate with a thinner structure; leadframe packages for electronic devices and mixed-signal applications; and substrate-based wirebond packages used to connect a die to a substrate. In addition, it offers micro-electro-mechanical systems packages that are miniaturized mechanical and electromechanical devices; and advanced system-in-package modules used in radio frequency and front end modules, basebands, connectivity, fingerprint sensors, display and touch screen drivers, sensors and MEMS, and NAND memory and solid-state drives. Further, the company provides wafer, package, and system level test services, as well as burn-in test and test development services. It serves integrated device manufacturers, fabless semiconductor companies, original equipment manufacturers, and contract foundries. The company was founded in 1968 and is headquartered in Tempe, Arizona.