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Better Buy: Rite Aid vs. Universal Display

By Mark Reeth and Simon Erickson - Mar 25, 2014 at 12:00PM

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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 quarterfinal matchup of The Motley Fool Better Buy Tournament, Rite Aid  ( RAD 0.17% ) squares off against Universal Display ( OLED -0.97% ) in a battle to determine which stock is the better buy now. The 64-company tournament pits two Motley Fool analysts against each other as they make the case for their stocks with the winner determined by you, the readers.

Motley Fool Consumer Goods editor Mark Reeth thinks Rite Aid is one of the best under-the-radar stocks on the market. A lot of people are well aware of how much the company struggled over the last few years, but much fewer know how strong the company looks today. Last year it turned a profit of $118 million, and that's on track to improve this year thanks to the company's strong pharmacy segment. This segment will also propel profits thanks to the effects of reformed health care laws, which Rite Aid is well-positioned to take advantage of.

Universal Display is bringing things to light, according to Motley Fool analyst Simon Erickson. The company's organic light emitting diodes (OLEDs) 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.

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?
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

Cast your vote in the poll below the video!

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Stocks Mentioned

Rite Aid Corporation Stock Quote
Rite Aid Corporation
RAD
$12.00 (0.17%) $0.02
Universal Display Corporation Stock Quote
Universal Display Corporation
OLED
$144.53 (-0.97%) $-1.42

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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