Analyzing Allient (NASDAQ:ALNT) and Universal Display (NASDAQ:OLED)

Allient (NASDAQ:ALNT – Get Free Report) and Universal Display (NASDAQ:OLED – Get Free Report) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.

Profitability

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

Earnings & Valuation

This table compares Allient and Universal Display”s revenue, earnings per share and valuation.

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

Dividends

Allient pays an annual dividend of $0.16 per share and has a dividend yield of 0.2%. Universal Display pays an annual dividend of $2.00 per share and has a dividend yield of 2.3%. Allient pays out 11.2% of its earnings in the form of a dividend. Universal Display pays out 44.6% 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. Universal Display has raised its dividend for 8 consecutive years. Universal Display is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Allient and Universal Display, as provided by MarketBeat.com.

Allient presently has a consensus target price of $77.33, suggesting a potential downside of 8.87%. Universal Display has a consensus target price of $130.60, suggesting a potential upside of 51.67%. Given Universal Display’s higher probable upside, analysts clearly believe Universal Display is more favorable than Allient.

Volatility and Risk

Allient has a beta of 1.63, indicating that its stock price is 63% more volatile than the S&P 500. Comparatively, Universal Display has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500.

Insider & Institutional Ownership

61.6% of Allient shares are owned by institutional investors. Comparatively, 78.2% of Universal Display shares are owned by institutional investors. 15.0% of Allient shares are owned by insiders. Comparatively, 2.2% of Universal Display shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Universal Display beats Allient on 10 of the 17 factors compared between the two stocks.

About Allient

(Get Free Report)

Allient Inc., together with its subsidiaries, designs, manufactures, and sells precision and specialty controlled motion components and systems for various industries in the United States, Canada, South America, Europe, and Asia-Pacific. It offers brush and brushless DC motors, brushless servo and torque motors, coreless DC motors, integrated brushless motor-drives, gearmotors, gearing, modular digital servo drives, motion controllers, optical encoders, active and passive filters, input/output modules, industrial communications gateways, light-weighting technologies, and other controlled motion-related products, as well as nano precision positioning systems, servo control systems, and digital servo amplifiers and drives. The company sells its products to end customers and original equipment manufacturers in vehicle, medical, aerospace and defense, and industrial markets through direct sales force, authorized manufacturers’ representatives, and distributors. The company was formerly known as Allied Motion Technologies Inc. and changed its name to Allient Inc. in August 2023. Allient Inc. was incorporated in 1962 and is headquartered in Amherst, New York.

About Universal Display

(Get Free Report)

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.