Comparing LG Display (NYSE:LPL) and ScanSource (NASDAQ:SCSC)

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

Analyst Ratings

This is a summary of current recommendations for ScanSource and LG Display, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ScanSource	0	3	0	1	2.50
LG Display	2	1	0	0	1.33

ScanSource presently has a consensus target price of $43.00, suggesting a potential downside of 24.81%. Given ScanSource’s stronger consensus rating and higher possible upside, research analysts plainly believe ScanSource is more favorable than LG Display.

Volatility & Risk

ScanSource has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, LG Display has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ScanSource	2.44%	10.10%	5.11%
LG Display	-5.26%	-19.82%	-4.88%

Valuation & Earnings

This table compares ScanSource 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
ScanSource	$3.23 billion	0.36	$78.87 million	$3.66	15.63
LG Display	$25,303.89 billion	0.00	$212.66 million	($0.91)	-3.62

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

Institutional & Insider Ownership

97.9% of ScanSource shares are owned by institutional investors. 3.2% of ScanSource shares are owned by company insiders. Comparatively, 0.0% of LG Display shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

ScanSource beats LG Display on 11 of the 14 factors compared between the two stocks.

About ScanSource

ScanSource, Inc. engages in the distribution of technology products and solutions in the United States, Canada, and Brazil. It operates through two segments, Specialty Technology Solutions and Modern Communications & Cloud. The Specialty Technology Solutions segment provides a portfolio of solutions primarily for enterprise mobile computing, data capture, barcode printing, point of sale (POS), payments, networking, electronic physical security, cyber security, and other technologies. This segment offers data capture and POS solutions to automate the collection, processing, and communication of information for commercial and industrial applications, including retail sales, distribution, shipping, inventory control, materials handling, warehouse management, and health care applications. It also provides electronic physical security products, such as identification, access control, video surveillance, and intrusion-related devices; networking products comprising wireless and networking infrastructure products; other software-as-a-service (SaaS) products; and engages in hardware rental activities. The Modern Communications & Cloud segment offers a portfolio of solutions primarily for communications technologies and services comprising voice, video conferencing, wireless, data networking, cybersecurity, cable, unified communications and collaboration, cloud, and technology services, as well as IP networks and other solutions for various vertical markets, such as education, healthcare, and government. The company serves manufacturing, warehouse and distribution, retail and e-commerce, hospitality, transportation and logistics, government, education and healthcare, and other industries. ScanSource, Inc. was incorporated in 1992 and is headquartered in Greenville, South Carolina.

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.