NAPCO Security Technologies (NASDAQ:NSSC – Get Free Report) and Daktronics (NASDAQ:DAKT – Get Free Report) are both small-cap technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.
Analyst Recommendations
This is a summary of recent recommendations for NAPCO Security Technologies and Daktronics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NAPCO Security Technologies | 0 | 2 | 6 | 0 | 2.75 |
| Daktronics | 0 | 1 | 2 | 1 | 3.00 |
NAPCO Security Technologies presently has a consensus price target of $50.40, suggesting a potential upside of 43.22%. Daktronics has a consensus price target of $31.00, suggesting a potential upside of 74.06%. Given Daktronics’ stronger consensus rating and higher probable upside, analysts plainly believe Daktronics is more favorable than NAPCO Security Technologies.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| NAPCO Security Technologies | 21.27% | 31.41% | 26.06% |
| Daktronics | 5.66% | 18.05% | 9.68% |
Institutional & Insider Ownership
85.1% of NAPCO Security Technologies shares are held by institutional investors. Comparatively, 61.7% of Daktronics shares are held by institutional investors. 5.7% of NAPCO Security Technologies shares are held by company insiders. Comparatively, 4.6% of Daktronics shares are held by company 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
NAPCO Security Technologies has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500. Comparatively, Daktronics has a beta of 1.68, suggesting that its stock price is 68% more volatile than the S&P 500.
Earnings and Valuation
This table compares NAPCO Security Technologies and Daktronics”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NAPCO Security Technologies | $202.32 million | 6.22 | $43.03 million | $1.21 | 29.08 |
| Daktronics | $838.71 million | 1.02 | $45.38 million | $0.98 | 18.17 |
Daktronics has higher revenue and earnings than NAPCO Security Technologies. Daktronics is trading at a lower price-to-earnings ratio than NAPCO Security Technologies, indicating that it is currently the more affordable of the two stocks.
Summary
NAPCO Security Technologies beats Daktronics on 9 of the 15 factors compared between the two stocks.
About NAPCO Security Technologies
Napco Security Technologies, Inc. develops, manufactures, and sells electronic security systems for commercial, residential, institutional, industrial, and governmental applications in the United States and internationally. Its access control systems include various types of identification readers, control panels, PC-based computers, and electronically activated door-locking devices; intrusion and fire alarm systems, consists of various detectors, a control panel, a digital keypad and signaling equipment; and door locking devices comprise microprocessor-based electronic door locks with push button, card readers and bio-metric operation, door alarms, mechanical door locks, and simple dead bolt locks. The company’s alarm systems include automatic communicators, cellular communication devices, control panels, combination control panels/digital communicators and digital keypad systems, fire alarm control panels, and area detectors; and video surveillance systems comprise video cameras, control panels, video monitors, or PCs. It also buys and resells various identification readers, video cameras, PC-based computers, and various peripheral equipment for access control and video surveillance systems; offers school security products; and markets peripheral and related equipment manufactured by other companies. The company markets and sells its products to independent distributors, dealers, and installers of security equipment. Napco Security Technologies, Inc. was founded in 1969 and is headquartered in Amityville, New York.
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.
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