IPS vs LG Display Which Is More Profitable?

IPS (In-Plane Switching) and LG Display are two major players in the display technology industry. IPS is known for its superior color accuracy, wide viewing angles, and fast response times, making it a popular choice for high-end monitors and TVs. On the other hand, LG Display is a leading manufacturer of OLED displays, known for their deep blacks, vibrant colors, and energy efficiency. Both companies have seen fluctuations in their stocks due to changing consumer preferences and technological advancements. This article will delve into the differences between IPS and LG Display stocks, analyzing their performance and potential for growth.

IPS or LG Display?

When comparing IPS and LG Display, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between IPS and LG Display.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. IPS has a dividend yield of 1.57%, while LG Display has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. IPS reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, LG Display reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with IPS P/E ratio at 11.42 and LG Display's P/E ratio at -1.17. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. IPS P/B ratio is 2.63 while LG Display's P/B ratio is 0.30.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, IPS has seen a 5-year revenue growth of 1.29%, while LG Display's is 0.75%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IPS's ROE at 24.70% and LG Display's ROE at -25.93%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥2504.00 for IPS and $3.18 for LG Display. Over the past year, IPS's prices ranged from ¥1500.00 to ¥2777.00, with a yearly change of 85.13%. LG Display's prices fluctuated between $3.10 and $5.66, with a yearly change of 82.58%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.