Daktronics (NASDAQ:DAKT – Get Free Report) and Nidec (OTCMKTS:NJDCY – Get Free Report) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.
Valuation and Earnings
This table compares Daktronics and Nidec”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Daktronics | $854.30 million | 1.11 | $45.38 million | $0.98 | 20.07 |
| Nidec | $17.12 billion | 2.43 | $1.11 billion | $0.26 | 16.77 |
Dividends
Daktronics pays an annual dividend of $0.20 per share and has a dividend yield of 1.0%. Nidec pays an annual dividend of $0.02 per share and has a dividend yield of 0.5%. Daktronics pays out 20.4% of its earnings in the form of a dividend. Nidec pays out 7.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Profitability
This table compares Daktronics and Nidec’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% |
| Nidec | N/A | N/A | N/A |
Insider & Institutional Ownership
61.7% of Daktronics shares are held by institutional investors. Comparatively, 0.2% of Nidec shares are held by institutional investors. 4.6% of Daktronics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Daktronics has a beta of 1.68, meaning that its share price is 68% more volatile than the S&P 500. Comparatively, Nidec has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Daktronics and Nidec, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Daktronics | 0 | 2 | 2 | 0 | 2.50 |
| Nidec | 0 | 3 | 0 | 0 | 2.00 |
Daktronics currently has a consensus price target of $31.00, suggesting a potential upside of 57.60%. Given Daktronics’ stronger consensus rating and higher possible upside, equities analysts plainly believe Daktronics is more favorable than Nidec.
Summary
Daktronics beats Nidec on 12 of the 16 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 Nidec
Nidec Corporation, together with its subsidiaries, develops, manufactures, and sells motors, electronics and optical components, and other related products in Japan and internationally. The company offers medium- and large-size motors, small-size and precision motors, motor-related products, units and modules, automotive components, mechanical equipment/machine tools, inspection and measuring equipment, electronic devices, sensors, and other products, as well as mold, molding, cutting, and machining components. Its products are used for applications in robotics, IoT products, automotive components, home appliances, logistics/agriculture, information technology, office automation, mobile optical components, medical and health care products, housing equipment, commercial and professional products, industrial machinery, and processing/inspection equipment. The company was incorporated in 1973 and is headquartered in Kyoto, Japan..
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