Head to Head Comparison: Daktronics (DAKT) and The Competition

Daktronics (NASDAQ:DAKT) is one of 377 publicly-traded companies in the “Electronic Equipment, Instruments & Components” industry, but how does it compare to its rivals? We will compare Daktronics to similar companies based on the strength of its dividends, institutional ownership, risk, earnings, analyst recommendations, profitability and valuation.

Risk and Volatility

Daktronics has a beta of 1.68, meaning that its share price is 68% more volatile than the S&P 500. Comparatively, Daktronics’ rivals have a beta of -0.32, meaning that their average share price is 132% less volatile than the S&P 500.

Dividends

Daktronics pays an annual dividend of $0.20 per share and has a dividend yield of 1.0%. Daktronics pays out 20.4% of its earnings in the form of a dividend. As a group, “Electronic Equipment, Instruments & Components” companies pay a dividend yield of 1.9% and pay out 70.3% of their earnings in the form of a dividend.

Profitability

This table compares Daktronics and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Daktronics	5.66%	18.05%	9.68%
Daktronics Competitors	-158.15%	-25.69%	-6.84%

Earnings and Valuation

This table compares Daktronics and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Daktronics	$854.30 million	$45.38 million	19.51
Daktronics Competitors	$114.91 billion	$166.60 million	5.93

Daktronics’ rivals have higher revenue and earnings than Daktronics. Daktronics is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

61.7% of Daktronics shares are owned by institutional investors. Comparatively, 43.5% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by institutional investors. 4.6% of Daktronics shares are owned by company insiders. Comparatively, 16.0% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Daktronics and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Daktronics	0	1	2	1	3.00
Daktronics Competitors	2047	7593	10405	655	2.47

Daktronics presently has a consensus price target of $31.00, indicating a potential upside of 62.13%. As a group, “Electronic Equipment, Instruments & Components” companies have a potential upside of 36.63%. Given Daktronics’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Daktronics is more favorable than its rivals.

Summary

Daktronics beats its rivals on 10 of the 15 factors compared.

About Daktronics

Daktronics, Inc. designs, manufactures, and sells electronic scoreboards, programmable display systems and large screen video displays for sporting, commercial, and transportation applications in the United States and internationally. It operates through Commercial, Live Events, High School Park and Recreation, Transportation, and International segments. The company also offers video display and walls; scoreboards and timing systems; LED message displays and sings; intelligent transportation systems dynamic message signs; mass transit display; sound systems; and digital billboards and street furniture, and digit and price displays. In addition, it provides indoor dynamic messaging systems and liquid crystal display signs; and software and controllers, which includes Venus, a control suite software to control the creation of messages and graphic sequences for uploading to displays. The company sells its products through direct sales and resellers. Daktronics, Inc. was founded in 1968 and is headquartered in Brookings, South Dakota.