Analyzing Ceva (NASDAQ:CEVA) and Universal Display (NASDAQ:OLED)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ceva	-9.25%	-2.70%	-2.35%
Universal Display	36.74%	12.20%	10.90%

Institutional & Insider Ownership

85.4% of Ceva shares are owned by institutional investors. Comparatively, 78.2% of Universal Display shares are owned by institutional investors. 3.1% of Ceva shares are owned by insiders. Comparatively, 2.2% of Universal Display shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Ceva and Universal Display, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ceva	1	1	8	1	2.82
Universal Display	1	4	3	0	2.25

Ceva currently has a consensus price target of $36.33, indicating a potential upside of 38.04%. Universal Display has a consensus price target of $114.00, indicating a potential upside of 26.82%. Given Ceva’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Ceva is more favorable than Universal Display.

Risk and Volatility

Ceva has a beta of 1.98, meaning that its share price is 98% more volatile than the S&P 500. Comparatively, Universal Display has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ceva	$109.60 million	6.85	-$10.64 million	($0.38)	-69.26
Universal Display	$650.61 million	6.22	$242.07 million	$4.93	18.23

Universal Display has higher revenue and earnings than Ceva. Ceva 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

Ceva beats Universal Display on 8 of the 14 factors compared between the two stocks.

About Ceva

CEVA, Inc. develops and licenses semiconductor intellectual property and software for connected and intelligent devices. Rather than manufacturing chips, the company provides technology that semiconductor companies and other customers can incorporate into their own products. Its portfolio includes digital signal processors and platforms for wireless connectivity, including cellular, Wi-Fi, Bluetooth and ultra-wideband, as well as technologies for audio, imaging, computer vision, sensor processing and edge artificial intelligence.

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.