Financial Analysis: Zumtobel Group (OTCMKTS:ZMTBY) and Daktronics (NASDAQ:DAKT)

Daktronics (NASDAQ:DAKT) and Zumtobel Group (OTCMKTS:ZMTBY) are both manufacturing companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Institutional and Insider Ownership

61.7% of Daktronics shares are owned by institutional investors. 5.3% of Daktronics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Daktronics and Zumtobel Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Daktronics	0	2	1	0	2.33
Zumtobel Group	0	0	0	0	0.00

Daktronics currently has a consensus price target of $26.00, suggesting a potential upside of 40.39%. Given Daktronics’ stronger consensus rating and higher probable upside, research analysts plainly believe Daktronics is more favorable than Zumtobel Group.

Profitability

This table compares Daktronics and Zumtobel Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Daktronics	0.96%	15.42%	8.15%
Zumtobel Group	N/A	N/A	N/A

Earnings and Valuation

This table compares Daktronics and Zumtobel Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Daktronics	$756.48 million	1.19	-$10.12 million	$0.13	142.46
Zumtobel Group	N/A	N/A	N/A	N/A	N/A

Zumtobel Group has lower revenue, but higher earnings than Daktronics.

Summary

Daktronics beats Zumtobel Group on 9 of the 9 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 Zumtobel Group

Zumtobel Group AG operates in the lighting industry worldwide. The company operates through two segments, Lighting and Components. It offers a range of products and services, including light management systems, components, and luminaires, as well as professional solutions for indoor and outdoor lighting applications. The company also provides hardware and software for lighting systems, such as LED light sources, LED drivers, and sensors, as well as lighting management systems; and light contracting, design, and data-based services, as well as project management for turnkey lighting solutions. It offers its products under the Zumtobel, Thorn, and Tridonic brands. The company was formerly known as Zumtobel AG and changed its name to Zumtobel Group AG in September 2014. Zumtobel Group AG was founded in 1950 and is headquartered in Dornbirn, Austria.