Financial Contrast: LSI Industries (LYTS) versus Its Rivals

LSI Industries (NASDAQ:LYTS) is one of 218 public companies in the “Electrical Equipment” industry, but how does it weigh in compared to its competitors? We will compare LSI Industries to similar businesses based on the strength of its dividends, earnings, valuation, analyst recommendations, profitability, institutional ownership and risk.

Institutional and Insider Ownership

73.9% of LSI Industries shares are owned by institutional investors. Comparatively, 37.4% of shares of all “Electrical Equipment” companies are owned by institutional investors. 4.7% of LSI Industries shares are owned by insiders. Comparatively, 14.9% of shares of all “Electrical Equipment” companies are owned 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.

Risk and Volatility

LSI Industries has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, LSI Industries’ competitors have a beta of -20.13, indicating that their average share price is 2,113% less volatile than the S&P 500.

Dividends

LSI Industries pays an annual dividend of $0.20 per share and has a dividend yield of 1.3%. LSI Industries pays out 31.7% of its earnings in the form of a dividend. As a group, “Electrical Equipment” companies pay a dividend yield of 1.5% and pay out 27.0% of their earnings in the form of a dividend. LSI Industries lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LSI Industries	2.96%	6.75%	3.16%
LSI Industries Competitors	-372.62%	-44.70%	-7.06%

Analyst Recommendations

This is a summary of current ratings for LSI Industries and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LSI Industries	0	2	3	0	2.60
LSI Industries Competitors	2311	5195	7243	440	2.38

LSI Industries currently has a consensus target price of $29.00, indicating a potential upside of 81.70%. As a group, “Electrical Equipment” companies have a potential upside of 43.87%. Given LSI Industries’ stronger consensus rating and higher possible upside, analysts plainly believe LSI Industries is more favorable than its competitors.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
LSI Industries	$689.40 million	$22.58 million	25.33
LSI Industries Competitors	$2.47 billion	$148.77 million	20.34

LSI Industries’ competitors have higher revenue and earnings than LSI Industries. LSI Industries 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.

Summary

LSI Industries beats its competitors on 9 of the 15 factors compared.

LSI Industries Company Profile

LSI Industries designs and manufactures lighting, graphics and visual display solutions for commercial customers. Its offerings include indoor and outdoor LED lighting, lighting controls, poles and related components, as well as signage, graphics and display fixtures. The company serves businesses in markets such as retail, grocery, convenience stores, restaurants, automotive and industrial facilities. Its products are used to illuminate and support customer-facing spaces, including stores, fuel stations and other commercial properties.