Surge Component (OTCMKTS:SPRS) vs. Universal Display (NASDAQ:OLED) Financial Contrast

Universal Display (NASDAQ:OLED) and Surge Component (OTCMKTS:SPRS) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Universal Display	34.08%	12.34%	11.04%
Surge Component	2.80%	4.98%	3.87%

Institutional and Insider Ownership

78.2% of Universal Display shares are held by institutional investors. 2.2% of Universal Display shares are held by insiders. Comparatively, 56.0% of Surge Component shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Universal Display has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500. Comparatively, Surge Component has a beta of 0.33, indicating that its stock price is 67% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Universal Display and Surge Component, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Display	1	2	3	0	2.33
Surge Component	0	0	0	0	0.00

Universal Display presently has a consensus target price of $130.60, indicating a potential upside of 67.56%. Given Universal Display’s stronger consensus rating and higher possible upside, research analysts clearly believe Universal Display is more favorable than Surge Component.

Valuation and Earnings

This table compares Universal Display and Surge Component”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Display	$650.61 million	5.60	$242.07 million	$4.48	17.40
Surge Component	$36.32 million	0.61	$1.14 million	$0.18	21.06

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

Summary

Universal Display beats Surge Component on 12 of the 14 factors compared between the two stocks.

About Universal Display

Universal Display Corporation engages in the research, development, and commercialization of organic light emitting diode (OLED) technologies and materials for use in display and solid-state lighting applications in the United States and internationally. The company offers PHOLED technologies and materials for displays and lighting products under the UniversalPHOLED brand. 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; and OVJP, an organic vapor jet printing technology. In addition, the company provides technology development and support services, including third-party collaboration and support to third parties for the commercialization of their OLED products; and contract research services in the areas of chemical synthesis research, development, and commercialization for non-OLED applications, as well as engages in the intellectual property and technology licensing activities. Universal Display Corporation was founded in 1985 and is headquartered in Ewing, New Jersey.

About Surge Component

Surge Components, Inc., together with its subsidiaries, supplies electronic products and components. It offers capacitors, which are electrical energy storage devices; and discrete semiconductor components, such as rectifiers, transistors, diodes, circuit protection devices, and audible components comprising audible transducers, Piezo buzzers, speakers, and microphones. The company also provides resonators, alarms, chimes, filters, and discriminators, as well as fuses, printed circuit boards, and switches. Its products are used in the electronic circuitry of various industries, including automotive, computer, communications, cellular telephones, consumer electronics, garage door openers, security equipment, audio equipment, telecom products, computer related products, power supply products, utility meters, and household appliances. The company sells its products to original equipment manufacturers and distributors through independent sales representatives or organizations in Canada, China, other Asian countries, South America, and Europe. Surge Components, Inc. was incorporated in 1981 and is headquartered in Deer Park, New York.