Sandvik (OTCMKTS: SDVKY) and Daktronics (NASDAQ:DAKT) are both industrial products companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.
Institutional and Insider Ownership
0.2% of Sandvik shares are owned by institutional investors. Comparatively, 56.1% of Daktronics shares are owned by institutional investors. 8.2% of Daktronics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Sandvik and Daktronics’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sandvik||$10.66 billion||2.17||$1.55 billion||$0.94||19.62|
|Daktronics||$586.54 million||0.67||$10.34 million||$0.23||38.30|
Sandvik has higher revenue and earnings than Daktronics. Sandvik is trading at a lower price-to-earnings ratio than Daktronics, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and target prices for Sandvik and Daktronics, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Daktronics has a consensus target price of $10.00, indicating a potential upside of 13.51%. Given Daktronics’ higher possible upside, analysts plainly believe Daktronics is more favorable than Sandvik.
This table compares Sandvik and Daktronics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Sandvik pays an annual dividend of $0.25 per share and has a dividend yield of 1.4%. Daktronics pays an annual dividend of $0.28 per share and has a dividend yield of 3.2%. Sandvik pays out 26.6% of its earnings in the form of a dividend. 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.
Risk & Volatility
Sandvik has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, Daktronics has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500.
Sandvik beats Daktronics on 8 of the 14 factors compared between the two stocks.
Sandvik AB (publ) operates as an engineering company in the areas of rock excavation, metal-cutting, and materials technology worldwide. The company offers construction equipment and tools, including breakers and demolition tools, mobile and stationary crushers and screens, rock tools, spare and wear parts, surface drill rigs, and tunneling equipment. It also provides diffusion furnaces, and furnace products and heating materials; cemented carbide components, and diamond and cubic boron nitride in mesh and polycrystalline forms; processing systems and steel belts; and metal cutting tools and tooling systems, such as boring, drilling, milling, reaming, and turning tools, as well as tailor made tools and inserts, and tooling systems. In addition, the company offers stainless steels, special alloys, and titanium products comprising bar and hollow bars, controlled expansion hollow products, billets and blooms, hot isostatic pressed products, metal powders, plates and sheets, strip steels, and welding and wire products, as well as tubes, pipes, fittings, and flanges. It serves aerospace, automotive, construction, consumer goods, general engineering, nuclear power generation, oil and gas, process, and renewable energy industries. Sandvik AB (publ) was founded in 1862 and is headquartered in Stockholm, Sweden.
Daktronics, Inc. designs, manufactures, and sells a range of electronic display systems and related products worldwide. It operates through five segments: Commercial, Live Events, High School Park and Recreation, Transportation, and International. The company offers video display systems, such as displays to show various levels of video, graphics, and animation, as well as controllers; LED ribbon board displays; mobile and modular display systems; freeform LED displays, which include architectural lighting and display products; indoor and outdoor scoreboards for various sports, digit displays, scoring and timing controllers, statistics software, and other related products; and timing systems for sports events primarily aquatics and track competitions, as well as swimming touchpads, race start systems, and relay take-off platforms. It also provides message displays; ITS dynamic message signs, including LED displays for road management, mass transit, and aviation applications; digit and directional displays for use in parking facilities; and audio systems for outdoor sports venues. In addition, the company offers digital billboards and street furniture displays used to display static images, which change at regular intervals for the out-of-home (OOH) advertising industry; Visiconn system and Venus Control Suite, a software application for controlling content and playback loops for digital billboard applications; and street furniture comprising advertising light boxes for digital OOH campaigns. Further, it provides digit and price displays, such as outdoor time and temperature displays, as well as Fuelight digit displays for the petroleum industry; and dynamic messaging systems for retailers, convenience stores, and other businesses, as well as maintenance and professional services related to its products. The company sells its products through direct sales and resellers. Daktronics, Inc. was founded in 1968 and is based in Brookings, South Dakota.
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