AU Optronics (AUO) Competitors

STMicroelectronics (NYSE:STM) and AU Optronics (NYSE:AUO) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, community ranking, analyst recommendations, media sentiment, dividends and institutional ownership.

Is STM or AUO a better dividend stock?

STMicroelectronics pays an annual dividend of $0.30 per share and has a dividend yield of 1.2%. AU Optronics pays an annual dividend of $0.11 per share and has a dividend yield of 1.8%. STMicroelectronics pays out 25.4% of its earnings in the form of a dividend. AU Optronics pays out 32.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Do institutionals and insiders hold more shares of STM or AUO?

5.1% of STMicroelectronics shares are held by institutional investors. Comparatively, 6.6% of AU Optronics shares are held by institutional investors. 16.0% of AU Optronics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Does the media refer more to STM or AUO?

In the previous week, STMicroelectronics had 18 more articles in the media than AU Optronics. MarketBeat recorded 18 mentions for STMicroelectronics and 0 mentions for AU Optronics. STMicroelectronics' average media sentiment score of 1.11 beat AU Optronics' score of 0.00 indicating that STMicroelectronics is being referred to more favorably in the media.

Company	Overall Sentiment
STMicroelectronics	Positive
AU Optronics	Neutral

Does the MarketBeat Community favor STM or AUO?

STMicroelectronics received 40 more outperform votes than AU Optronics when rated by MarketBeat users. However, 62.71% of users gave AU Optronics an outperform vote while only 61.47% of users gave STMicroelectronics an outperform vote.

Company	Underperform	Outperform
STMicroelectronics	Outperform Votes 536 61.47%	Underperform Votes 336 38.53%
AU Optronics	Outperform Votes 496 62.71%	Underperform Votes 295 37.29%

Do analysts rate STM or AUO?

STMicroelectronics presently has a consensus price target of $30.97, suggesting a potential upside of 26.60%. Given STMicroelectronics' stronger consensus rating and higher possible upside, research analysts clearly believe STMicroelectronics is more favorable than AU Optronics.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
STMicroelectronics	1 Sell rating(s)	9 Hold rating(s)	4 Buy rating(s)	1 Strong Buy rating(s)	2.33
AU Optronics	0 Sell rating(s)	0 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	0.00

Which has more risk and volatility, STM or AUO?

STMicroelectronics has a beta of 1.53, meaning that its stock price is 53% more volatile than the S&P 500. Comparatively, AU Optronics has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.

Which has preferable earnings and valuation, STM or AUO?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
STMicroelectronics	$12.32B	1.78	$1.56B	$1.18	20.73
AU Optronics	$10.05B	0.57	$433.98M	$0.34	17.56

Is STM or AUO more profitable?

STMicroelectronics has a net margin of 11.74% compared to AU Optronics' net margin of -0.59%. STMicroelectronics' return on equity of 8.92% beat AU Optronics' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
STMicroelectronics	11.74%	8.92%	6.22%
AU Optronics	-0.59%	-0.81%	-0.42%

Summary

STMicroelectronics beats AU Optronics on 16 of the 21 factors compared between the two stocks.