Analyzing CPS Technologies (NASDAQ:CPSH) and Universal Display (NASDAQ:OLED)

CPS Technologies (NASDAQ:CPSH) and Universal Display (NASDAQ:OLED) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.

Volatility & Risk

CPS Technologies has a beta of 1.63, meaning that its stock price is 63% more volatile than the S&P 500. Comparatively, Universal Display has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CPS Technologies	-7.13%	-12.35%	-9.59%
Universal Display	36.95%	15.82%	13.99%

Valuation & Earnings

This table compares CPS Technologies and Universal Display”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CPS Technologies	$21.12 million	2.31	-$3.13 million	($0.12)	-28.00
Universal Display	$647.68 million	10.67	$222.08 million	$5.12	28.40

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for CPS Technologies and Universal Display, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CPS Technologies	0	0	0	0	0.00
Universal Display	0	3	5	0	2.63

Universal Display has a consensus target price of $190.43, suggesting a potential upside of 30.98%. Given Universal Display’s stronger consensus rating and higher probable upside, analysts clearly believe Universal Display is more favorable than CPS Technologies.

Insider and Institutional Ownership

11.2% of CPS Technologies shares are held by institutional investors. Comparatively, 78.2% of Universal Display shares are held by institutional investors. 15.6% of CPS Technologies shares are held by company insiders. Comparatively, 2.0% of Universal Display shares are held by company 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 CPS Technologies on 12 of the 14 factors compared between the two stocks.

About CPS Technologies

CPS Technologies Corporation provides advanced material solutions to the transportation, automotive, energy, computing/internet, telecommunication, aerospace, defense, and oil and gas markets in the United States, Europe, and Asia. The company offers metal matrix composites such as baseplates for various applications, including motor controllers used in electric trains, subway cars, wind turbines, and hybrid and electric vehicles; hermetic packages for use in radar, satellite, and avionics applications; baseplates and housings used in modules built with wide band gap semiconductors; and lids and heat spreaders for use in internet switches and routers. It also assembles housings and packages that includes metal matrix composite components for hybrid circuits; and produces armor for naval and military applications. The company sells its products to microelectronics systems companies. The company was formerly known as Ceramics Process Systems Corporation and changed its name to CPS Technologies Corporation in March 2007. CPS Technologies Corporation was incorporated in 1984 and is based in Norton, Massachusetts.

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.