Critical Review: Daktronics (DAKT) and AU Optronics Corp (AUO)
Daktronics (NASDAQ: DAKT) and AU Optronics Corp (NYSE:AUO) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitabiliy, valuation and analyst recommendations.
Insider & Institutional Ownership
51.8% of Daktronics shares are held by institutional investors. Comparatively, 8.2% of AU Optronics Corp shares are held by institutional investors. 8.2% of Daktronics shares are held by company insiders. Comparatively, 16.0% of AU Optronics Corp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Daktronics and AU Optronics Corp’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Daktronics||$586.54 million||0.73||$34.81 million||$0.23||42.35|
|AU Optronics Corp||$11.36 billion||0.33||$2.27 billion||$0.75||5.23|
AU Optronics Corp has higher revenue and earnings than Daktronics. AU Optronics Corp is trading at a lower price-to-earnings ratio than Daktronics, indicating that it is currently the more affordable of the two stocks.
This table compares Daktronics and AU Optronics Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|AU Optronics Corp||6.63%||11.96%||5.50%|
This is a breakdown of current recommendations for Daktronics and AU Optronics Corp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|AU Optronics Corp||2||4||1||0||1.86|
Daktronics currently has a consensus price target of $12.25, suggesting a potential upside of 25.77%. AU Optronics Corp has a consensus price target of $4.00, suggesting a potential upside of 2.04%. Given Daktronics’ stronger consensus rating and higher possible upside, research analysts clearly believe Daktronics is more favorable than AU Optronics Corp.
Daktronics pays an annual dividend of $0.28 per share and has a dividend yield of 2.9%. AU Optronics Corp does not pay a dividend. Daktronics pays out 121.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Risk and Volatility
Daktronics has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500. Comparatively, AU Optronics Corp has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500.
Daktronics Company Profile
Daktronics, Inc. is a supplier of electronic scoreboards, electronic display systems, digital messaging solutions, software and services for sporting, commercial and transportation applications. The Company operates through five segments: Commercial, Live Events, High School Park and Recreation, Transportation, and International. The Company offers a range of products, from small scoreboards and electronic displays to video display systems, as well as related control, timing and sound systems. It designs, markets, manufactures, installs and services integrated systems displaying real-time data, graphics, animation and video. Its product families include video displays, scoreboards and timing systems, message displays, intelligent transportation systems (ITS) dynamic message signs, space availability displays, audio systems, advertising displays, digit and price displays and digital messaging systems.
AU Optronics Corp Company Profile
AU Optronics Corp. is a thin-film-transistor liquid-crystal display (TFT-LCD) panel provider. The Company operates in two business segments: display business and solar business. Through Display business segment, the Company designs, develops, manufactures, assembles and markets flat panel displays and most of its products are TFT-LCD panels. Its panels are primarily used in televisions, monitors, mobile personal computers (PCs), mobile devices and commercial and other applications (such as displays for automobiles, industrial PCs, automated teller machines, point of sale terminals and pachinko machines). Through Solar business segment, the Company is capable of manufacturing upstream and midstream products, such as ingots, solar wafers and solar cells. Through the Company’s subsidiaries AUO Crystal Corp. and M.Setek Co., Ltd. (M.Setek), it mainly focuses on research, production and sales of solar materials, such as ingots and solar wafers.
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