Daktronics (NASDAQ:DAKT – Get Free Report) and AMETEK (NYSE:AME – Get Free Report) are both technology companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.
Insider & Institutional Ownership
61.7% of Daktronics shares are held by institutional investors. Comparatively, 87.4% of AMETEK shares are held by institutional investors. 4.6% of Daktronics shares are held by insiders. Comparatively, 0.5% of AMETEK shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings for Daktronics and AMETEK, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Daktronics | 0 | 1 | 2 | 1 | 3.00 |
| AMETEK | 0 | 5 | 13 | 1 | 2.79 |
Daktronics presently has a consensus target price of $31.00, indicating a potential upside of 53.66%. AMETEK has a consensus target price of $274.41, indicating a potential upside of 14.20%. Given Daktronics’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Daktronics is more favorable than AMETEK.
Profitability
This table compares Daktronics and AMETEK’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% |
| AMETEK | 20.04% | 16.93% | 11.26% |
Earnings & Valuation
This table compares Daktronics and AMETEK”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Daktronics | $838.71 million | 1.16 | $45.38 million | $0.98 | 20.59 |
| AMETEK | $7.40 billion | 7.44 | $1.48 billion | $6.84 | 35.13 |
AMETEK has higher revenue and earnings than Daktronics. Daktronics is trading at a lower price-to-earnings ratio than AMETEK, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Daktronics has a beta of 1.68, meaning that its stock price is 68% more volatile than the S&P 500. Comparatively, AMETEK has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.
Summary
AMETEK beats Daktronics on 9 of the 14 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 AMETEK
AMETEK, Inc. manufactures and sells electronic instruments and electromechanical devices in the North America, Europe, Asia, and South America, and internationally. The company's EIG segment offers advanced instruments for the process, aerospace, power, and industrial markets; process and analytical instruments for the oil and gas, petrochemical, pharmaceutical, semiconductor, automation, and food and beverage industries; instruments to the laboratory equipment, ultra-precision manufacturing, medical, and test and measurement markets; power quality monitoring and c devices, uninterruptible power supplies, programmable power and electromagnetic compatibility test equipment, and sensors for gas turbines and dashboard instruments; heavy trucks, instrumentation, and controls for the food and beverage industries; and aircraft and engine sensors, power supplies, embedded computing, monitoring, fuel and fluid measurement, and data acquisition systems for aerospace and defense industry. Its EMG segment offers engineered medical components and devices, automation solutions, thermal management systems, specialty metals, and electrical interconnects; single-use and consumable surgical instruments, implantable components, and drug delivery systems; engineered electrical connectors and electronics packaging to protect sensitive devices and mission-critical electronics; precision motion control products for data storage, medical devices, business equipment, and automation; high-purity powdered metals, strips and foils, specialty clad metals, and metal matrix composites; motor-blower systems and heat exchangers for thermal management, military and commercial aircraft, and military ground vehicles; motors for commercial appliances, food and beverage machines, hydraulic pumps, and industrial blowers; and operates a network of aviation maintenance, repair, and overhaul facilities. AMETEK, Inc. was incorporated in 1930 and is headquartered in Berwyn, Pennsylvania.
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