Analyzing Daktronics (NASDAQ:DAKT) & Corning (GLW)

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

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 1.76% 5.14% 2.90%
Corning 42.69% 11.25% 6.28%

Volatility and Risk

Daktronics has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500. Comparatively, Corning has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Daktronics $586.54 million 0.73 $34.81 million $0.23 42.09
Corning $9.72 billion 2.97 $2.71 billion $3.67 8.53

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

Institutional and Insider Ownership

51.8% of Daktronics shares are owned by institutional investors. Comparatively, 72.7% of Corning shares are owned by institutional investors. 8.2% of Daktronics shares are owned by company insiders. Comparatively, 0.6% of Corning shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Daktronics pays an annual dividend of $0.28 per share and has a dividend yield of 2.9%. Corning pays an annual dividend of $0.62 per share and has a dividend yield of 2.0%. Daktronics pays out 121.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Corning pays out 16.9% of its earnings in the form of a dividend. Corning has increased its dividend for 6 consecutive years.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Daktronics and Corning, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Daktronics 0 0 2 0 3.00
Corning 1 8 4 0 2.23

Daktronics currently has a consensus price target of $12.25, indicating a potential upside of 26.55%. Corning has a consensus price target of $27.13, indicating a potential downside of 13.39%. Given Daktronics’ stronger consensus rating and higher possible upside, research analysts clearly believe Daktronics is more favorable than Corning.

Summary

Corning beats Daktronics on 12 of the 17 factors compared between the two stocks.

Daktronics Company Profile

Daktronics, Inc. is a supplier of electronic scoreboards, electronic display systems, digital messaging solutions, software and services for sporting, commercial and transportation applications. The Company operates through five segments: Commercial, Live Events, High School Park and Recreation, Transportation, and International. The Company offers a range of products, from small scoreboards and electronic displays to video display systems, as well as related control, timing and sound systems. It designs, markets, manufactures, installs and services integrated systems displaying real-time data, graphics, animation and video. Its product families include video displays, scoreboards and timing systems, message displays, intelligent transportation systems (ITS) dynamic message signs, space availability displays, audio systems, advertising displays, digit and price displays and digital messaging systems.

Corning Company Profile

Corning Incorporated is engaged in manufacturing specialty glass and ceramics. Its segments include Display Technologies, Optical Communications, Environmental Technologies, Specialty Materials, Life Sciences and All Other. The Display Technologies segment manufactures glass substrates for flat panel liquid crystal displays (LCDs). The Optical Communications segment manufactures carrier and enterprise network components for the telecommunications industry. The Environmental Technologies segment manufactures ceramic substrates and filters for automotive and diesel emission control applications. As of December 31, 2016, the Specialty Materials segment manufactured products, which provided more than 150 material formulations for glass, glass ceramics and fluoride crystals. The Life Sciences segment manufactures glass and plastic labware, equipment, media and reagents. The All Other segment consists of its Pharmaceutical Technologies business and non-LCD glass business, and among others.

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