Head-To-Head Contrast: Daktronics (DAKT) vs. Its Competitors

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

Institutional and Insider Ownership

61.7% of Daktronics shares are owned by institutional investors. Comparatively, 43.3% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by institutional investors. 4.6% of Daktronics shares are owned by insiders. Comparatively, 16.6% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Daktronics and its competitors, 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	2046	7582	10386	650	2.47

Daktronics currently has a consensus price target of $31.00, indicating a potential upside of 56.88%. As a group, “Electronic Equipment, Instruments & Components” companies have a potential upside of 32.09%. Given Daktronics’ stronger consensus rating and higher possible upside, analysts plainly believe Daktronics is more favorable than its competitors.

Earnings & Valuation

This table compares Daktronics and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Daktronics	$838.71 million	$45.38 million	20.16
Daktronics Competitors	$115.44 billion	$167.44 million	0.86

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

Profitability

This table compares Daktronics and its competitors’ 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	-167.85%	-25.41%	-6.86%

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’ competitors have a beta of -0.17, meaning that their average share price is 117% less volatile than the S&P 500.

Summary

Daktronics beats its competitors on 9 of the 13 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.