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Better Buy: Universal Display vs. Merck

By Simon Erickson and Dave Williamson – Mar 20, 2014 at 11:25AM

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We've collected the most popular companies among Fool.com readers and put them head to head in a good old-fashioned challenge we're calling The Motley Fool Better-Buy Tournament.

In today's ­first round match-up of The Motley Fool Better-Buy Tournament, Universal Display squares off against Merck in a battle to determine which stock is the better buy now. The 64-company tournament pits two Motley Fool analysts against each as they make the case for their stocks with the winner determined by you, the readers.

Universal Display (OLED -1.13%) is bringing things to light, according to Motley Fool analyst Simon Erickson. The company's organic light emitting diodes ("OLED"s) shine brighter and consume less power than traditional technologies. A boatload of new opportunities are coming online in 2014 -- including LG's big-screen televisions, Samsung's Smartphones and tablets, and a new class of wearable electronic devices. This spells big growth for the company's OLED material sales, which increased 115% last year and drove revenue and profits to record levels. As the world becomes increasingly mobile and power-conscious, look for OLED to continue to shine.

Motley Fool healthcare analyst David Williamson argues that despite near-term challenges, Merck's (MRK -3.02%) strong pipeline and exciting reorganization makes it an easy winner. Merck's underated pipeline is teaming with blockbuster potential, but no drug is more exciting than its groundbreaking immuno-oncology asset MK3475. Also, Merck has its famed consumer unit -- maker of Dr. Scholl's, Claritin, and Coppertone sunscreen -- on the block for a rumored $11 billion, which if completed should lead to more share buybacks, increased dividends, or both.

Watch these analysts square off in the video below and then vote for a winner. Then check out the other companies in the Motley Fool Better-Buy Bracket

This year's winning stock?
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Cast your vote in the poll below the video!

David Williamson owns shares of Merck. Simon Erickson owns shares of Universal Display. The Motley Fool recommends Universal Display. The Motley Fool owns shares of Universal Display. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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