Reviewing AU Optronics Corp (AUO) & Corning (NYSE:GLW)

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

Valuation & Earnings

This table compares AU Optronics Corp and Corning’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
AU Optronics Corp $11.41 billion 0.33 $2.28 billion $1.11 3.53
Corning $9.72 billion 2.77 $2.71 billion $2.22 13.18

Corning has higher revenue, but lower earnings than AU Optronics Corp. AU Optronics Corp is trading at a lower price-to-earnings ratio than Corning, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for AU Optronics Corp and Corning, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AU Optronics Corp 3 3 1 0 1.71
Corning 1 9 4 0 2.21

AU Optronics Corp currently has a consensus price target of $4.00, indicating a potential upside of 2.04%. Corning has a consensus price target of $27.29, indicating a potential downside of 6.70%. Given AU Optronics Corp’s higher possible upside, analysts plainly believe AU Optronics Corp is more favorable than Corning.

Risk & Volatility

AU Optronics Corp has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500. Comparatively, Corning has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500.

Institutional and Insider Ownership

8.2% of AU Optronics Corp shares are owned by institutional investors. Comparatively, 72.7% of Corning shares are owned by institutional investors. 16.0% of AU Optronics Corp shares are owned by company insiders. Comparatively, 0.6% of Corning shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Corning pays an annual dividend of $0.62 per share and has a dividend yield of 2.1%. AU Optronics Corp does not pay a dividend. Corning pays out 27.9% of its earnings in the form of a dividend. AU Optronics Corp has raised its dividend for 6 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
AU Optronics Corp 6.63% 11.96% 5.50%
Corning 24.16% 11.72% 6.54%

Summary

Corning beats AU Optronics Corp on 11 of the 17 factors compared between the two stocks.

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.

Corning Company Profile

Corning Incorporated is engaged in manufacturing specialty glass and ceramics. Its segments include Display Technologies, Optical Communications, Environmental Technologies, Specialty Materials, Life Sciences and All Other. The Display Technologies segment manufactures glass substrates for flat panel liquid crystal displays (LCDs). The Optical Communications segment manufactures carrier and enterprise network components for the telecommunications industry. The Environmental Technologies segment manufactures ceramic substrates and filters for automotive and diesel emission control applications. As of December 31, 2016, the Specialty Materials segment manufactured products, which provided more than 150 material formulations for glass, glass ceramics and fluoride crystals. The Life Sciences segment manufactures glass and plastic labware, equipment, media and reagents. The All Other segment consists of its Pharmaceutical Technologies business and non-LCD glass business, and among others.

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