Critical Survey: Daktronics (NASDAQ:DAKT) and Astrotech (NASDAQ:ASTC)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Astrotech	N/A	N/A	N/A
Daktronics	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings and target prices for Astrotech and Daktronics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Astrotech	1	0	0	0	1.00
Daktronics	0	1	2	1	3.00

Daktronics has a consensus target price of $31.00, suggesting a potential upside of 51.00%. Given Daktronics’ stronger consensus rating and higher probable upside, analysts clearly believe Daktronics is more favorable than Astrotech.

Earnings & Valuation

This table compares Astrotech and Daktronics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Astrotech	$913,000.00	11.51	-$17.06 million	($8.49)	-0.62
Daktronics	N/A	N/A	N/A	$0.98	20.95

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

Insider and Institutional Ownership

24.4% of Astrotech shares are owned by institutional investors. Comparatively, 61.7% of Daktronics shares are owned by institutional investors. 16.8% of Astrotech shares are owned by insiders. Comparatively, 4.6% of Daktronics shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Daktronics beats Astrotech on 7 of the 9 factors compared between the two stocks.

About Astrotech

Astrotech Corporation operates as a mass spectrometry company worldwide. It owns and licenses the intellectual property related to the Astrotech Mass Spectrometer Technology, a platform mass spectrometry technology. The company also develops TRACER 1000, a mass spectrometer-based explosive trace detector to replace the explosives trace detectors used at airports, cargo and other secured facilities, and borders. In addition, it develops AgLAB-1000, a mass spectrometer for use in the hemp and cannabis market. Further, the company develops BreathTest-1000, a breath analysis tool to screen for volatile organic compound metabolites found in a person's breath. The company was formerly known as SPACEHAB, Inc. and changed its name to Astrotech Corporation in 2009. The company was incorporated in 1984 and is based in Austin, Texas.

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.