Critical Contrast: Daktronics (DAKT) vs. Its Peers

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

Profitability

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

Earnings & Valuation

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

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.

Volatility and Risk

Daktronics has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500. Comparatively, Daktronics’ competitors have a beta of -0.30, meaning that their average share price is 130% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Daktronics and its competitors, as provided by MarketBeat.com.

Daktronics currently has a consensus target price of $31.00, suggesting a potential upside of 55.00%. As a group, “Electronic Equipment, Instruments & Components” companies have a potential upside of 40.81%. Given Daktronics’ stronger consensus rating and higher possible upside, analysts clearly believe Daktronics is more favorable than its competitors.

Insider and Institutional 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, 16.4% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by 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.

Summary

Daktronics beats its competitors on 8 of the 13 factors compared.

About Daktronics

(Get Free Report)

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.