Better Buy: Universal Display vs. LG Display

Universal Display (NASDAQ: OLED) and LG Display (NYSE: LPL) offer investors two different ways to profit from the global display panel market. Universal Display owns the world's largest portfolio of OLED patents, and it sells materials and licenses its technologies to display panel makers.

One of Universal's top customers is LG Display, which produces TFT-LCD and OLED panels for a wide range of markets. OLED screens are more power efficient than LCD screens because they turn individual pixels on and off, and the newer technology produces higher contrast ratios.

Over the past five years, Universal Display's stock rallied roughly 180% as LG Display's stock tumbled nearly 60%. Let's see why Universal outperformed LG by such a wide margin, and whether that trend will continue over the next few years.

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Source Fool.com