Daktronics (NASDAQ:DAKT) and 3D Systems (NYSE:DDD) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.
Institutional & Insider Ownership
58.5% of Daktronics shares are owned by institutional investors. Comparatively, 70.4% of 3D Systems shares are owned by institutional investors. 8.2% of Daktronics shares are owned by company insiders. Comparatively, 5.0% of 3D Systems 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.
Valuation & Earnings
This table compares Daktronics and 3D Systems’ top-line 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||$0.22||34.36|
|3D Systems||$687.66 million||1.83||-$45.51 million||($0.37)||-29.73|
Daktronics has higher earnings, but lower revenue than 3D Systems. 3D Systems is trading at a lower price-to-earnings ratio than Daktronics, indicating that it is currently the more affordable of the two stocks.
Daktronics pays an annual dividend of $0.28 per share and has a dividend yield of 3.7%. 3D Systems does not pay a dividend. Daktronics pays out 127.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a breakdown of recent ratings and price targets for Daktronics and 3D Systems, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Daktronics currently has a consensus price target of $10.00, suggesting a potential upside of 32.28%. 3D Systems has a consensus price target of $12.83, suggesting a potential upside of 16.67%. Given Daktronics’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Daktronics is more favorable than 3D Systems.
This table compares Daktronics and 3D Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
Daktronics has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500. Comparatively, 3D Systems has a beta of 1.95, suggesting that its stock price is 95% more volatile than the S&P 500.
Daktronics beats 3D Systems on 10 of the 15 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.
3D Systems Company Profile
3D Systems Corporation, through its subsidiaries, provides three-dimensional (3D) printing products and services worldwide. The company offers 3D printers, such as stereolithography, selective laser sintering, direct metal printing, multi jet printing, and color jet printers that transform data input generated by 3D design software, CAD software, or other 3D design tools into printed parts under the Accura, DuraForm, LaserForm, CastForm, and VisiJet brand names. It also develops, blends, and markets various print materials, such as plastic, nylon, metal, composite, elastomeric, wax, polymeric dental, and Class IV bio-compatible materials. In addition, the company provides digital design tools, including software, scanners, and haptic devices, as well as products for product design, mold and die design, 3D scan-to-print, reverse engineering, production machining, metrology, and inspection. Further, it offers 3D Sprint and 3DXpert, a proprietary software to prepare and optimize CAD data and manage the additive manufacturing processes, which provides automated support building and placement, build platform management, and print queue management; and 3D virtual reality simulators and simulator modules for medical applications, as well as digitizing scanners for medical and mechanical applications. Additionally, the company provides warranty, maintenance, and training services; on-demand manufacturing solutions; and software and precision healthcare services. It primarily serves companies and small and midsize businesses in medical, dental, automotive, aerospace, durable good, government, defense, technology, jewelry, electronic, education, consumer good, energy, and other industries through direct sales force, as well as partner channels and distributors. 3D Systems Corporation was founded in 1986 and is headquartered in Rock Hill, South Carolina.
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