Shares of Samsung Electronics and LG Electronics are currently going in opposite directions, with the former closing on Friday at $2,281.50 per share and being extremely close to the company's record valuation of $2,234.14. On the other hand, Samsung's domestic rival closed at $61.13 per share last week, down by 7.4 percentage points compared to its results on July 7 when the firm announced its preliminary financial results for the second quarter of the year, with some industry watchers speculating that this downward trend may continue for the foreseeable future, claiming that the Seoul-based tech giant needs more time to bounce back from its recent issues that saw it struggle in the global phone market across the majority of price segments and posting especially disappointing results in the premium product category.
Samsung's return on equity (ROE) amounted to almost 14 percent in the first quarter of the year, whereas LG's one was just under six percentage points during the same period. This particular metric shows that Samsung is still doing a significantly better job of turning a profit on the investments it receives from its shareholders, though LG has been improving in this segment in recent times. The price earnings ratio (PER) of Samsung and LG presently stands at 16.17 and 161.61 percent, respectively, indicating that the former is significantly undervalued relative to the latter. A number of industry analysts in the Far Eastern country are now recommending investors to hold off with purchasing shares of LG until the firm manages to stabilize its performance which may happen in the coming quarters, whereas Samsung's stock is still seen as a relatively safe investment, despite the fact that a significant portion of the company's recent performance increase is attributed to a surging demand in the mobile chip market that most experts agree isn't sustainable.
Both South Korean consumer electronics manufacturers are currently in the process of preparing for the releases of their next Android-powered flagships, with Samsung already confirming that the Galaxy Note 8 is set to be officially unveiled on August 23. LG's V30 is scheduled for an August 31 launch, and both handsets are expected to be showcased at IFA Berlin 2017 in early September.