Corning (NYSE:GLW) and Daktronics (NASDAQ:DAKT) Head to Head Review

Daktronics (NASDAQ:DAKT) and Corning (NYSE:GLW) are both technology companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.

Earnings & Valuation

This table compares Daktronics and Corning”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Daktronics	$854.30 million	1.10	$45.38 million	$0.98	19.94
Corning	$15.63 billion	6.58	$1.60 billion	$2.47	48.31

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

Analyst Recommendations

This is a breakdown of recent recommendations for Daktronics and Corning, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Daktronics	0	2	2	0	2.50
Corning	0	5	15	1	2.81

Daktronics currently has a consensus price target of $31.00, suggesting a potential upside of 58.61%. Corning has a consensus price target of $172.18, suggesting a potential upside of 44.28%. Given Daktronics’ higher possible upside, equities analysts clearly believe Daktronics is more favorable than Corning.

Institutional and Insider Ownership

61.7% of Daktronics shares are held by institutional investors. Comparatively, 69.8% of Corning shares are held by institutional investors. 4.6% of Daktronics shares are held by company insiders. Comparatively, 0.3% of Corning shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Daktronics and Corning’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Daktronics	5.66%	18.05%	9.68%
Corning	12.13%	20.83%	8.39%

Dividends

Daktronics pays an annual dividend of $0.20 per share and has a dividend yield of 1.0%. Corning pays an annual dividend of $1.12 per share and has a dividend yield of 0.9%. Daktronics pays out 20.4% of its earnings in the form of a dividend. Corning pays out 45.3% 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. Daktronics is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

Daktronics has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500. Comparatively, Corning has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.

Summary

Corning beats Daktronics on 11 of the 17 factors compared between the two stocks.

About Daktronics

Daktronics, Inc. designs and manufactures electronic display and control systems. Its products include LED video displays, scoreboards, digital billboards, message displays, audio systems and the software used to operate them. The company serves customers in settings such as sports venues, schools, retail and commercial locations, transportation facilities and public spaces. Its systems are used for live event presentation, advertising, information and public messaging. Founded in 1968 and headquartered in Brookings, South Dakota, Daktronics serves customers in the United States and internationally.

About Corning

Corning Incorporated is a materials science and technology company with roots dating to 1851, when it was established as Corning Glass Works. The company develops and manufactures specialty glass, ceramics and optical materials for customers in a range of industries. Its products include optical fiber, cable and connectivity solutions for communications networks; glass substrates used in display technologies; and specialty glass such as Gorilla Glass for consumer electronics. Corning also makes ceramic substrates and filters for emissions-control systems, as well as glassware and other products for life sciences and laboratory use.