LSI Industries (NASDAQ:LYTS – Get Free Report) and Enersys (NYSE:ENS – Get Free Report) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.
Institutional & Insider Ownership
73.9% of LSI Industries shares are held by institutional investors. Comparatively, 94.9% of Enersys shares are held by institutional investors. 7.3% of LSI Industries shares are held by company insiders. Comparatively, 1.1% of Enersys shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of current recommendations and price targets for LSI Industries and Enersys, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LSI Industries | 0 | 2 | 3 | 0 | 2.60 |
| Enersys | 0 | 0 | 5 | 1 | 3.17 |
Profitability
This table compares LSI Industries and Enersys’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LSI Industries | 3.28% | 7.51% | 3.71% |
| Enersys | 9.29% | 24.02% | 11.42% |
Valuation and Earnings
This table compares LSI Industries and Enersys”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LSI Industries | $689.40 million | 1.12 | $22.58 million | $0.67 | 30.82 |
| Enersys | $3.75 billion | 1.73 | $293.56 million | $9.34 | 19.22 |
Enersys has higher revenue and earnings than LSI Industries. Enersys is trading at a lower price-to-earnings ratio than LSI Industries, indicating that it is currently the more affordable of the two stocks.
Dividends
LSI Industries pays an annual dividend of $0.20 per share and has a dividend yield of 1.0%. Enersys pays an annual dividend of $1.15 per share and has a dividend yield of 0.6%. LSI Industries pays out 29.9% of its earnings in the form of a dividend. Enersys pays out 12.3% 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. Enersys has raised its dividend for 2 consecutive years.
Volatility and Risk
LSI Industries has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500. Comparatively, Enersys has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500.
Summary
Enersys beats LSI Industries on 15 of the 18 factors compared between the two stocks.
About LSI Industries
LSI Industries Inc. produces and sells non-residential lighting and retail display solutions in the United States, Canada, Mexico, and Latin America. It operates through two segments, Lighting and Display Solutions. The Lighting segment manufactures, markets, and sells non-residential outdoor and indoor lighting fixture and control solutions in the commercial and industrial markets. This segment also offers lighting control products, including sensors, photocontrols, dimmers, motion detection, and Bluetooth systems to support lighting fixtures; and designs, engineers, and manufactures electronic circuit boards, assemblies, and sub-assemblies. The Display Solutions segment manufactures, sells, and installs exterior and interior visual image and display elements, including printed and structural graphics, digital signage, menu board systems, display fixtures, refrigerated displays, and custom display elements. This segments products and services include signage and canopy graphics, pump dispenser graphics, building fascia graphics, decals, interior signage and marketing graphics, aisle markers, wall mural graphics, and refrigerated and non-refrigerated merchandising displays. This segment also provides project management services comprising installation management, site surveys, permitting, and content management; and manages and executes the implementation of large rollout programs. It serves refueling and convenience store, parking lot and garage, quick-service restaurant, retail and grocery store, automotive, warehouse, sports court, and field markets, as well as warehouses. LSI Industries Inc. was founded in 1976 and is headquartered in Cincinnati, Ohio.
About Enersys
EnerSys engages in the provision of stored energy solutions for industrial applications worldwide. It operates in four segments: Energy Systems, Motive Power, Specialty, and New Ventures. The Energy Systems segment offers uninterruptible power systems (UPS) applications for computer and computer-controlled systems, as well as telecommunications systems; switchgear and electrical control systems used in industrial facilities and electric utilities, large-scale energy storage, and energy pipelines; integrated power solutions and services to broadband, telecom, data center, and renewable and industrial customers; and thermally managed cabinets and enclosures for electronic equipment and batteries. The Motive Power segment provides power solutions for electric industrial forklifts used in manufacturing, warehousing, and other material handling applications, as well as automated guided vehicles, mining equipment, and diesel locomotive starting and other rail equipment. The Specialty offers batteries for starting, lighting, and ignition applications in automotive and over-the-road trucks; and energy solutions for satellites, spacecraft, commercial aircraft, military land vehicles, aircraft, submarines, ships, and other tactical vehicles, as well as medical devices and equipment. The New Venture segment provides energy storage and management systems for demand charge reduction, utility back-up power, and dynamic fast charging for electric vehicles. The company also offers battery chargers, power equipment, battery accessories, and outdoor cabinet enclosures, as well as related after-market and customer-support services for industrial batteries. It sells its products through a network of distributors, independent representatives, and internal sales forces. The company was formerly known as Yuasa, Inc. and changed its name to EnerSys in January 2001. EnerSys was founded in 1991 and is headquartered in Reading, Pennsylvania.
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