Comparing LSI Industries (NASDAQ:LYTS) and Enersys (NYSE:ENS)

Enersys (NYSE:ENS) and LSI Industries (NASDAQ:LYTS) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.

Profitability

This table compares Enersys and LSI Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Enersys	9.29%	24.02%	11.42%
LSI Industries	3.28%	7.51%	3.71%

Earnings and Valuation

This table compares Enersys and LSI Industries”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enersys	$3.75 billion	1.70	$293.56 million	$9.34	18.99
LSI Industries	$689.40 million	1.15	$22.58 million	$0.67	31.58

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.

Insider and Institutional Ownership

94.9% of Enersys shares are owned by institutional investors. Comparatively, 73.9% of LSI Industries shares are owned by institutional investors. 1.1% of Enersys shares are owned by company insiders. Comparatively, 7.3% of LSI Industries shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Enersys has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, LSI Industries has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Enersys and LSI Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enersys	0	0	5	1	3.17
LSI Industries	0	2	3	0	2.60

Enersys presently has a consensus price target of $265.00, indicating a potential upside of 49.42%. LSI Industries has a consensus price target of $29.00, indicating a potential upside of 37.05%. Given Enersys’ stronger consensus rating and higher probable upside, equities analysts plainly believe Enersys is more favorable than LSI Industries.

Dividends

Enersys pays an annual dividend of $1.15 per share and has a dividend yield of 0.6%. LSI Industries pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. Enersys pays out 12.3% of its earnings in the form of a dividend. LSI Industries pays out 29.9% 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.

Summary

Enersys beats LSI Industries on 15 of the 18 factors compared between the two stocks.

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.

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.