Critical Survey: Daktronics (NASDAQ:DAKT) vs. BYD Electronic (International) (OTC:BYDIF)

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

Dividends

BYD Electronic (International) pays an annual dividend of C$0.03 per share and has a dividend yield of 0.8%. Daktronics pays an annual dividend of $0.20 per share and has a dividend yield of 2.1%. BYD Electronic (International) pays out 7.0% of its earnings in the form of a dividend. Daktronics pays out 19.4% 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.

Analyst Recommendations

This is a summary of current ratings and price targets for BYD Electronic (International) and Daktronics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BYD Electronic (International)	0	0	1	0	3.00
Daktronics	0	0	0	0	N/A

Earnings and Valuation

This table compares BYD Electronic (International) and Daktronics’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BYD Electronic (International)	N/A	N/A	N/A	C$0.41	8.36
Daktronics	$812.07 million	0.54	$6.80 million	$1.03	9.20

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

Institutional & Insider Ownership

9.7% of BYD Electronic (International) shares are owned by institutional investors. Comparatively, 61.7% of Daktronics shares are owned by institutional investors. 8.3% of Daktronics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares BYD Electronic (International) and Daktronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BYD Electronic (International)	N/A	N/A	N/A
Daktronics	6.59%	30.57%	13.56%

Summary

Daktronics beats BYD Electronic (International) on 9 of the 11 factors compared between the two stocks.

About BYD Electronic (International)

BYD Electronic (International) Company Limited, together with its subsidiaries, operates as an investment holding company, designs, manufactures, assembles, and sells mobile handset components and modules in the People's Republic of China and internationally. The company also provides assembly services; and manufactures and sells batteries, chargers, and iron phosphate batteries for use in electric buses, trucks, cars, and forklifts, as well as its components and spare parts. In addition, it builds and maintains monorail projects. BYD Electronic (International) Company Limited was founded in 1995 and is headquartered in Shenzhen, the People's Republic of China.

About Daktronics

Daktronics, Inc. designs, manufactures, and markets electronic display systems and related products 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; message displays; intelligent transportation systems dynamic message signs; mass transit display; sound systems; and digital billboards, 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.