REC vs LG Display Which Performs Better?

REC and LG Display are two leading companies in the display technology industry, competing fiercely for market share and investors' attention. REC, a Norwegian company, specializes in providing high-quality solar panels and silicon materials, while LG Display, a South Korean giant, is renowned for its cutting-edge OLED and LCD display panels. Both companies have seen fluctuating stock prices in recent years due to various market factors, making them interesting choices for investors looking to navigate the volatile display technology sector.

REC or LG Display?

When comparing REC 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 REC 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. REC has a dividend yield of 4.64%, while LG Display has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. REC reports a 5-year dividend growth of 9.03% year and a payout ratio of 21.68%. 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 REC P/E ratio at 9.35 and LG Display's P/E ratio at -1.97. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. REC P/B ratio is 1.89 while LG Display's P/B ratio is 0.49.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, REC has seen a 5-year revenue growth of 4.31%, while LG Display's is -0.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with REC's ROE at 21.27% and LG Display's ROE at -25.45%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹511.35 for REC and $3.47 for LG Display. Over the past year, REC's prices ranged from ₹324.20 to ₹654.00, with a yearly change of 101.73%. LG Display's prices fluctuated between $3.38 and $5.66, with a yearly change of 67.46%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.