Advanced Energy (AEIS) and LG Display (LPL) Head-To-Head Review

Advanced Energy (NASDAQ: AEIS) and LG Display (NYSE:LPL) are both mid-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Advanced Energy 20.55% 35.06% 25.41%
LG Display 6.61% 12.40% 6.63%

Risk and Volatility

Advanced Energy has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, LG Display has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500.

Dividends

LG Display pays an annual dividend of $0.17 per share and has a dividend yield of 1.5%. Advanced Energy does not pay a dividend. LG Display pays out 7.1% of its earnings in the form of a dividend.

Insider and Institutional Ownership

94.4% of Advanced Energy shares are held by institutional investors. Comparatively, 3.3% of LG Display shares are held by institutional investors. 1.2% of Advanced Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Advanced Energy and LG Display’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Advanced Energy $671.01 million 3.61 $137.86 million $4.23 14.42
LG Display $24.59 billion 0.33 $1.74 billion $2.40 4.78

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Advanced Energy and LG Display, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Advanced Energy 0 2 2 0 2.50
LG Display 0 2 3 0 2.60

Advanced Energy presently has a consensus price target of $90.33, indicating a potential upside of 48.09%. LG Display has a consensus price target of $15.00, indicating a potential upside of 30.78%. Given Advanced Energy’s higher possible upside, analysts plainly believe Advanced Energy is more favorable than LG Display.

Summary

Advanced Energy beats LG Display on 11 of the 16 factors compared between the two stocks.

Advanced Energy Company Profile

Advanced Energy Industries, Inc., together with its subsidiaries, designs, manufactures, sells, and supports power conversion and control products that transform electrical power into various usable forms. It offers process power systems, including direct current (DC), pulsed DC, low frequency, high voltage, and radio frequency (RF) power supplies, as well as matching networks and remote plasma sources for reactive gas applications and RF instrumentation. The company also provides power control modules and thermal instrumentation products for rapid thermal processing, chemical vapor deposition, crystal growing, and other semiconductor and solar applications, as well as in chemical processing, glass manufacturing, and other general industrial power applications; and high voltage products for various applications, including semiconductor wafer processing and metrology, scientific instrumentation, mass spectrometry, industrial printing, and analytical x-ray systems for industrial and analytical applications. In addition, it offers repair services, conversions, upgrades, and refurbishments and used equipment to companies. The company markets and sells its products through direct sales force, independent sales representatives, and distributors in the North America, Europe, and Asia. Advanced Energy Industries, Inc. was founded in 1981 and is headquartered in Fort Collins, Colorado.

LG Display Company Profile

LG Display Co., Ltd. manufactures and sells thin-film transistor liquid crystal display and organic light-emitting diode (OLED) technology-based display panels in the Republic of Korea, the Americas, Europe, Asia, and internationally. It offers various display panels primarily for use in televisions, notebook computers, desktop monitors, tablet computers, and mobile devices. The company also provides panels for industrial and other applications, including entertainment systems, automotive displays, portable navigation devices, and medical diagnostic equipment. It serves end-brand customers and their system integrators. The company was formerly known as LG.Philips LCD Co., Ltd. and changed its name to LG Display Co., Ltd. in February 2008. LG Display Co., Ltd. was founded in 1985 and is headquartered in Seoul, South Korea.

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