Analyzing Daktronics (NASDAQ:DAKT) and Corning (NYSE:GLW)

Corning (NYSE:GLW) and Daktronics (NASDAQ:DAKT) are both technology companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Valuation & Earnings

This table compares Corning and Daktronics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corning	$17.72 billion	5.15	$1.60 billion	$2.47	42.93
Daktronics	$838.71 million	1.11	$45.38 million	$0.98	19.81

Corning has higher revenue and earnings than Daktronics. Daktronics is trading at a lower price-to-earnings ratio than Corning, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Corning and Daktronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Corning	12.13%	20.83%	8.39%
Daktronics	5.66%	18.05%	9.68%

Insider and Institutional Ownership

69.8% of Corning shares are held by institutional investors. Comparatively, 61.7% of Daktronics shares are held by institutional investors. 0.3% of Corning shares are held by company insiders. Comparatively, 4.6% of Daktronics shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Corning and Daktronics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corning	0	5	14	1	2.80
Daktronics	0	2	2	0	2.50

Corning presently has a consensus price target of $175.81, suggesting a potential upside of 65.81%. Daktronics has a consensus price target of $31.00, suggesting a potential upside of 59.71%. Given Corning’s stronger consensus rating and higher probable upside, research analysts clearly believe Corning is more favorable than Daktronics.

Volatility & Risk

Corning has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, Daktronics has a beta of 1.72, suggesting that its share price is 72% more volatile than the S&P 500.

Summary

Corning beats Daktronics on 12 of the 15 factors compared between the two stocks.

About Corning

Corning Incorporated engages in the display technologies, optical communications, environmental technologies, specialty materials, and life sciences businesses in the United States and internationally. The company's Display Technologies segment offers glass substrates for flat panel displays, including liquid crystal displays and organic light-emitting diodes that are used in televisions, notebook computers, desktop monitors, tablets, and handheld devices. Its Optical Communications segment provides optical fibers and cables; and hardware and equipment products, such as cable assemblies, fiber optic hardware and connectors, optical components and couplers, closures, network interface devices, and other accessories for the telecommunications industry, businesses, governments, and individuals. The company's Specialty Materials segment manufactures products that offer material formulations for glass, glass ceramics, crystals, precision metrology instruments, and software, as well as glass wafers and substrates, tinted sunglasses, and radiation shielding products for various markets comprising mobile consumer electronics, semiconductor equipment optics and consumables, aerospace and defense optics, radiation shielding products, sunglasses, and telecommunications components. Its Environmental Technologies segment provides ceramic substrates and filter products for emissions control in mobile, gasoline, and diesel applications. The company's Life Sciences segment offers laboratory products, including consumables, such as plastic vessels, liquid handling plastics, specialty surfaces, cell culture media, and serum, as well as general labware, and glassware and equipment under the Corning, Pyrex, Falcon, and Axygen brands. The company was formerly known as Corning Glass Works and changed its name to Corning Incorporated in April 1989. Corning Incorporated was founded in 1851 and is headquartered in Corning, 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.