Reviewing AU Optronics Corp (AUO) & LG Display Co. (NYSE:LPL)

LG Display Co. (NYSE: LPL) and AU Optronics Corp (NYSE:AUO) are both mid-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitabiliy, institutional ownership, valuation, dividends, analyst recommendations and risk.

Profitability

This table compares LG Display Co. and AU Optronics Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LG Display Co. 6.16% 12.08% 6.59%
AU Optronics Corp 6.63% 11.96% 5.50%

Analyst Recommendations

This is a breakdown of recent ratings for LG Display Co. and AU Optronics Corp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LG Display Co. 4 1 2 0 1.71
AU Optronics Corp 3 4 1 0 1.75

LG Display Co. currently has a consensus target price of $16.79, indicating a potential upside of 17.91%. AU Optronics Corp has a consensus target price of $4.00, indicating a potential upside of 2.56%. Given LG Display Co.’s higher probable upside, analysts plainly believe LG Display Co. is more favorable than AU Optronics Corp.

Valuation and Earnings

This table compares LG Display Co. and AU Optronics Corp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
LG Display Co. $24.41 billion 0.42 $4.31 billion N/A N/A
AU Optronics Corp $11.41 billion 0.33 $2.28 billion $1.11 3.51

LG Display Co. has higher revenue and earnings than AU Optronics Corp.

Risk & Volatility

LG Display Co. has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, AU Optronics Corp has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500.

Institutional and Insider Ownership

3.9% of LG Display Co. shares are owned by institutional investors. Comparatively, 8.2% of AU Optronics Corp shares are owned by institutional investors. 16.0% of AU Optronics Corp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

LG Display Co. beats AU Optronics Corp on 7 of the 12 factors compared between the two stocks.

LG Display Co. Company Profile

LG Display Co., Ltd. manufactures thin-film transistor liquid crystal display, organic light emitting diode and other display panel technologies. The Company manufactures display panels in a range of sizes and specifications primarily for use in televisions, notebook computers, desktop monitors, tablet computers and various other applications, including mobile devices. The Company supplies ultra-high definition television panels. It also manufactures display panels for industrial and other applications, including entertainment systems, automotive displays, portable navigation devices and medical diagnostic equipment. It operates fabrication facilities, which include separately designated sets of fabrication production lines housed in certain facilities, located in its Display Clusters in Gumi and Paju, Korea and in Guangzhou China, and approximately four separately designated sets of fabrication production lines housed in certain facilities.

AU Optronics Corp Company Profile

AU Optronics Corp. is a thin-film-transistor liquid-crystal display (TFT-LCD) panel provider. The Company operates in two business segments: display business and solar business. Through Display business segment, the Company designs, develops, manufactures, assembles and markets flat panel displays and most of its products are TFT-LCD panels. Its panels are primarily used in televisions, monitors, mobile personal computers (PCs), mobile devices and commercial and other applications (such as displays for automobiles, industrial PCs, automated teller machines, point of sale terminals and pachinko machines). Through Solar business segment, the Company is capable of manufacturing upstream and midstream products, such as ingots, solar wafers and solar cells. Through the Company’s subsidiaries AUO Crystal Corp. and M.Setek Co., Ltd. (M.Setek), it mainly focuses on research, production and sales of solar materials, such as ingots and solar wafers.

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