Head-To-Head Review: Daktronics (NASDAQ:DAKT) and Corning (NYSE:GLW)

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

Insider & Institutional Ownership

61.7% of Daktronics shares are held by institutional investors. Comparatively, 69.8% of Corning shares are held by institutional investors. 4.6% of Daktronics shares are held by company insiders. Comparatively, 0.3% of Corning shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

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	5.66%	18.05%	9.68%
Corning	12.13%	20.83%	8.39%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Daktronics	$838.71 million	1.15	$45.38 million	$0.98	20.41
Corning	$15.63 billion	6.40	$1.60 billion	$2.47	46.99

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

Risk and Volatility

Daktronics has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500. Comparatively, Corning has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Daktronics	0	2	2	0	2.50
Corning	0	5	14	1	2.80

Daktronics currently has a consensus price target of $31.00, suggesting a potential upside of 55.00%. Corning has a consensus price target of $174.56, suggesting a potential upside of 50.39%. Given Daktronics’ higher probable upside, equities analysts plainly believe Daktronics is more favorable than Corning.

Summary

Corning beats Daktronics on 11 of the 15 factors compared between the two stocks.

About Daktronics

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.

About Corning

Corning Incorporated engages in the display technologies, optical communications, environmental technologies, specialty materials, and life sciences businesses in the United States and internationally. The company's Display Technologies segment offers glass substrates for flat panel displays, including liquid crystal displays and organic light-emitting diodes that are used in televisions, notebook computers, desktop monitors, tablets, and handheld devices. Its Optical Communications segment provides optical fibers and cables; and hardware and equipment products, such as cable assemblies, fiber optic hardware and connectors, optical components and couplers, closures, network interface devices, and other accessories for the telecommunications industry, businesses, governments, and individuals. The company's Specialty Materials segment manufactures products that offer material formulations for glass, glass ceramics, crystals, precision metrology instruments, and software, as well as glass wafers and substrates, tinted sunglasses, and radiation shielding products for various markets comprising mobile consumer electronics, semiconductor equipment optics and consumables, aerospace and defense optics, radiation shielding products, sunglasses, and telecommunications components. Its Environmental Technologies segment provides ceramic substrates and filter products for emissions control in mobile, gasoline, and diesel applications. The company's Life Sciences segment offers laboratory products, including consumables, such as plastic vessels, liquid handling plastics, specialty surfaces, cell culture media, and serum, as well as general labware, and glassware and equipment under the Corning, Pyrex, Falcon, and Axygen brands. The company was formerly known as Corning Glass Works and changed its name to Corning Incorporated in April 1989. Corning Incorporated was founded in 1851 and is headquartered in Corning, New York.