Daktronics (NASDAQ:DAKT) and Sigma Labs (NASDAQ:SGLB) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, dividends, valuation, profitability and analyst recommendations.

Dividends

Daktronics pays an annual dividend of $0.28 per share and has a dividend yield of 3.6%. Sigma Labs does not pay a dividend.

Valuation & Earnings

This table compares Daktronics and Sigma Labs’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Daktronics $610.53 million 0.56 $5.56 million N/A N/A
Sigma Labs $640,000.00 19.58 -$4.57 million ($1.04) -1.38

Daktronics has higher revenue and earnings than Sigma Labs.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Daktronics and Sigma Labs, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Daktronics 0 1 1 0 2.50
Sigma Labs 0 0 1 0 3.00

Daktronics presently has a consensus target price of $10.00, indicating a potential upside of 30.21%. Given Daktronics’ higher probable upside, equities analysts plainly believe Daktronics is more favorable than Sigma Labs.

Profitability

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

Net Margins Return on Equity Return on Assets
Daktronics 0.29% 2.96% 1.63%
Sigma Labs -1,194.04% -179.11% -152.58%

Insider and Institutional Ownership

61.1% of Daktronics shares are held by institutional investors. Comparatively, 3.6% of Sigma Labs shares are held by institutional investors. 8.2% of Daktronics shares are held by insiders. Comparatively, 9.6% of Sigma Labs shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility & Risk

Daktronics has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, Sigma Labs has a beta of -1.51, meaning that its stock price is 251% less volatile than the S&P 500.

Summary

Daktronics beats Sigma Labs on 10 of the 13 factors compared between the two stocks.

Daktronics Company Profile

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; 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 images, which change at regular intervals for the out-of-home (OOH) advertising industry comprising Visiconn system and Venus Control Suite, a software application for controlling content and playback loops for digital billboard applications; and street furniture 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.

Sigma Labs Company Profile

Sigma Labs, Inc. develops and commercializes manufacturing and materials technologies. It offers PrintRite3D quality assurance software apps primarily for 3D printing and additive manufacturing industries. The company's products are used in advanced manufacturing technologies to assure part quality in real time as the part is being made and enhance process control practices. It also provides engineering consulting services for developing next-generation technologies in advanced manufacturing technologies. The company serves aerospace and defense manufacturing, energy and power generation, bio-medical manufacturing, automotive manufacturing, and firearms and recreational equipment industries. Sigma Labs, Inc. was founded in 2010 and is based in Santa Fe, New Mexico.

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