KLA Corporation (KLAC) and Universal Display Corporation (NASDAQ:OLED) Comparing side by side

KLA Corporation (NASDAQ:KLAC) and Universal Display Corporation (NASDAQ:OLED), both competing one another are Semiconductor Equipment & Materials companies. We will contrast their analyst recommendations, profitability, risk, dividends, institutional ownership, earnings and valuation.

Earnings & Valuation

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
KLA Corporation 118 4.78 N/A 8.18 16.66
Universal Display Corporation 164 28.56 N/A 1.76 120.27

We can see in table 1 the earnings per share, top-line revenue and valuation of KLA Corporation and Universal Display Corporation. Universal Display Corporation seems to has lower earnings, but higher revenue compared to KLA Corporation. The business with a lower P/E ratio is currently more affordable of the two stocks. KLA Corporation is trading at a lower P/E ratio than Universal Display Corporation, indicating that it is currently more affordable of the two stocks.

Profitability

Table 2 shows us the return on equity, return on assets and net margins of both companies.

Net Margins Return on Equity Return on Assets
KLA Corporation 0.00% 68.5% 20%
Universal Display Corporation 0.00% 0% 0%

Risk and Volatility

A 1.74 beta means KLA Corporation’s volatility is 74.00% more than Standard and Poor’s 500’s volatility. Competitively, Universal Display Corporation’s 53.00% volatility makes it more volatile than Standard and Poor’s 500, because of the 1.53 beta.

Liquidity

The current Quick Ratio of KLA Corporation is 1.8 while its Current Ratio is 2.6. Meanwhile, Universal Display Corporation has a Current Ratio of 5 while its Quick Ratio is 4.4. Universal Display Corporation is better positioned to pay off its short-term and long-term debts than KLA Corporation.

Analyst Recommendations

KLA Corporation and Universal Display Corporation Ratings and Recommendations are available on the next table.

Sell Ratings Hold Ratings Buy Ratings Rating Score
KLA Corporation 0 3 8 2.73
Universal Display Corporation 0 2 0 2.00

KLA Corporation’s upside potential is 7.91% at a $145.91 average target price. Competitively Universal Display Corporation has a consensus target price of $174.5, with potential downside of -18.61%. Based on the analysts view we can conclude, KLA Corporation is looking more favorable than Universal Display Corporation.

Insider and Institutional Ownership

KLA Corporation and Universal Display Corporation has shares owned by institutional investors as follows: 92.7% and 80.2%. Insiders owned roughly 0.2% of KLA Corporation’s shares. On the other hand, insiders owned about 2.6% of Universal Display Corporation’s shares.

Performance

Here are the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
KLA Corporation -4.44% 11.99% 8.22% 28.63% 28.24% 52.33%
Universal Display Corporation -1.62% 10.53% 34.16% 104.95% 119.08% 125.59%

For the past year KLA Corporation has weaker performance than Universal Display Corporation

Summary

On 7 of the 12 factors Universal Display Corporation beats KLA Corporation.

KLA-Tencor Corporation designs, manufactures, and markets process control and yield management solutions for the semiconductor and related nano-electronics industries worldwide. It offers chip manufacturing products, such as front-end defect inspection tools, defect review systems, advanced packaging process control systems, metrology solutions, in-situ process monitoring products, and lithography software; wafer manufacturing products comprising wafer manufacturing products comprising surface and defect inspection, wafer geometry and nanotopography metrology, and data management; and reticle manufacturing products, such as defect inspection and pattern placement metrology products. The company also provides light emitting diode (LED), power device, and compound semiconductor manufacturing products consisting of patterned wafer inspection, defect inspection, surface metrology, and data management products; thin-film head metrology and inspection, virtual lithography, in-situ process monitoring, transparent and metal substrate inspection, and data management products for data storage media/head manufacturing; and stylus and optical profiling, and optical inspection products for microelectromechanical systems manufacturing, as well as products for general purpose/lab applications. It offers its products and services for bare wafer, IC, lithography reticle, and disk manufacturers. KLA-Tencor Corporation was founded in 1975 and is headquartered in Milpitas, California.

Universal Display Corporation engages in the research, development, and commercialization of organic light emitting diode (OLED) technologies and materials for use in flat panel displays and solid-state lighting applications. As of February 22, 2018, it owned or had exclusive and co-exclusive licenses, or had sole license rights with respect to approximately 4,500 issued and pending patents worldwide. The company licenses and supplies its proprietary UniversalPHOLED materials to display and lighting manufacturers, and others. 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; encapsulation technology for the packaging of flexible OLEDs and other thin-film devices, as well as for use as a barrier film for plastic substrates; UniversalP2OLED, which are printable phosphorescent OLEDs; OVJP, an organic vapor jet printing technology; OVPD, an organic vapor phase deposition process for manufacturing a small molecule OLED; and TOLED, which are transparent OLEDs for the fabrication of OLEDs that have transparent cathodes. In addition, the company provides technology development and support services, including government contract work and support provided to third parties for the commercialization of their OLED products. Universal Display Corporation has strategic relationships with Samsung Display Co., Ltd.; LG Display Co., Ltd.; BOE Technology Group Co., Ltd.; Tianma Micro-electronics Co., Ltd.; AU Optronics Corporation; EverDisplay Optronics (Shanghai) Limited; Shenzhen Royole Display Technologies Co. Ltd.; Japan Display Inc.; Sharp Corporation; Konica Minolta Holdings Inc.; Sumitomo Chemical Company, Ltd.; OLEDWorks GmbH; and Kaneka Corporation. The company was founded in 1985 and is headquartered in Ewing, New Jersey.

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