LG Display (NYSE:LPL) and Veralto (NYSE:VLTO) Head to Head Review

Veralto (NYSE:VLTO) and LG Display (NYSE:LPL) are both technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Veralto and LG Display, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veralto	0	4	6	0	2.60
LG Display	2	1	0	0	1.33

Veralto currently has a consensus price target of $110.90, suggesting a potential upside of 14.13%. Given Veralto’s stronger consensus rating and higher probable upside, analysts clearly believe Veralto is more favorable than LG Display.

Institutional & Insider Ownership

91.3% of Veralto shares are owned by institutional investors. 0.4% of Veralto shares are owned by insiders. Comparatively, 0.0% of LG Display shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Veralto has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, LG Display has a beta of 1.71, meaning that its stock price is 71% more volatile than the S&P 500.

Earnings and Valuation

This table compares Veralto and LG Display”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Veralto	$5.50 billion	4.30	$940.00 million	$3.96	24.54
LG Display	$25,303.89 billion	0.00	$212.66 million	($0.91)	-3.55

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

Dividends

Veralto pays an annual dividend of $0.52 per share and has a dividend yield of 0.5%. LG Display pays an annual dividend of $0.18 per share and has a dividend yield of 5.6%. Veralto pays out 13.1% of its earnings in the form of a dividend. LG Display pays out -19.8% 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. Veralto has raised its dividend for 1 consecutive years. LG Display is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Veralto	17.35%	34.76%	13.38%
LG Display	-5.26%	-19.82%	-4.88%

Summary

Veralto beats LG Display on 13 of the 17 factors compared between the two stocks.

About Veralto

Veralto Corporation provides water analytics, water treatment, marking and coding, and packaging and color services worldwide. It operates through two segments, Water Quality (WQ) and Product Quality & Innovation (PQI). The WQ segment offers precision instrumentation and water treatment technologies to measure, analyze, and treat water in residential, commercial, municipal, industrial, research, and natural resource applications through the Hach, Trojan Technologies, and ChemTreat brands. This segment provides water solutions, including chemical reagents, services, and digital solutions. The PQI segment offers inline printing solutions for products and packaging with marking and coding systems; marking and coding for packaged goods and related consumables; design software and imaging systems for the creation of new packaging designs; color management solutions for printed packages and consumer and industrial products; color standard services for the design industry; and a software solution that provides digital asset management, marketing resource management, and product information management. This segment sells its products and services through the Videojet, Linx, Esko, X-Rite, and Pantone brands to regulated industries, including municipal utilities, food and beverage, pharmaceutical, and industrials. The company was formerly known as DH EAS Holding Corp. and changed its name to Veralto Corporation in February 2023. Veralto Corporation was incorporated in 2022 and is headquartered in Waltham, Massachusetts.

About LG Display

LG Display Co., Ltd., together with its subsidiaries, engages in the manufacture and sale of thin-film transistor liquid crystal display (TFT-LCD) and organic light emitting diode (OLED) technology-based display panels. Its TFT-LCD and OLED technology-based display panels are primarily used in televisions, notebook computers, desktop monitors, tablet computers, mobile devices, and automotive displays. The company also provides display panels for industrial and other applications, including entertainment systems, portable navigation devices, and medical diagnostic equipment. In addition, it provides janitorial services; invests in venture business and acquire technologies; and manages intellectual property. The company operates in Korea, China, rest of Asia, the Americas, Poland, and rest of Europe. LG Display Co., Ltd. was formerly known as LG.Philips LCD Co., Ltd. and changed its name to LG Display Co., Ltd. in March 2008. The company was incorporated in 1985 and is headquartered in Seoul, South Korea.