Daktronics (NASDAQ:DAKT – Get Free Report) and Hammond Power Solutions (OTCMKTS:HMDPF – Get Free Report) are both manufacturing companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation and risk.
Institutional and Insider Ownership
61.7% of Daktronics shares are owned by institutional investors. Comparatively, 30.8% of Hammond Power Solutions shares are owned by institutional investors. 5.3% of Daktronics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Daktronics and Hammond Power Solutions, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Daktronics | 0 | 1 | 0 | 1 | 3.00 |
| Hammond Power Solutions | 0 | 0 | 1 | 0 | 3.00 |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Daktronics | $756.48 million | 1.77 | -$10.12 million | $0.13 | 211.38 |
| Hammond Power Solutions | N/A | N/A | N/A | C$0.39 | 371.62 |
Hammond Power Solutions has lower revenue, but higher earnings than Daktronics. Daktronics is trading at a lower price-to-earnings ratio than Hammond Power Solutions, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Daktronics and Hammond Power Solutions’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Daktronics | 0.96% | 15.42% | 8.15% |
| Hammond Power Solutions | N/A | N/A | N/A |
Summary
Daktronics beats Hammond Power Solutions on 7 of the 10 factors compared between the two stocks.
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.
About Hammond Power Solutions
Hammond Power Solutions Inc., together with its subsidiaries, engages in the design, manufacture, and sale of various transformers in Canada, the United States, Mexico, and India. It offers custom electrical magnetics, cast resin, custom liquid filled distribution and power transformers, and standard electrical transformers to the electrical and electronic industries. The company also provides buck-boost, control, distribution, drive isolation, encapsulated, furnace, multi-pulse, pad mounted, regulating, and medium voltage distribution transformers, as well as reactors, active harmonic filters, dV/dT filters, and unitized substations. It serves renewable energy, drive and automation, energy distribution, infrastructure, irrigation, and industrial markets. Hammond Power Solutions Inc. was founded in 1917 and is headquartered in Guelph, Canada.
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