Critical Comparison: LSI Industries (LYTS) vs. Lighting Science Group (LSCG)

LSI Industries (NASDAQ:LYTS) and Lighting Science Group (OTCMKTS:LSCG) are both small-cap construction companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, risk and profitability.

Risk and Volatility

LSI Industries has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500. Comparatively, Lighting Science Group has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.

Earnings and Valuation

This table compares LSI Industries and Lighting Science Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LSI Industries $342.02 million 0.32 -$19.54 million $0.22 19.05
Lighting Science Group $52.70 million 0.03 -$15.59 million N/A N/A

Lighting Science Group has lower revenue, but higher earnings than LSI Industries.

Dividends

LSI Industries pays an annual dividend of $0.20 per share and has a dividend yield of 4.8%. Lighting Science Group does not pay a dividend. LSI Industries pays out 90.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

67.1% of LSI Industries shares are held by institutional investors. 2.9% of LSI Industries shares are held by company insiders. Comparatively, 91.4% of Lighting Science Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for LSI Industries and Lighting Science Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LSI Industries 0 0 3 0 3.00
Lighting Science Group 0 0 0 0 N/A

LSI Industries presently has a consensus price target of $11.27, suggesting a potential upside of 168.89%. Given LSI Industries’ higher probable upside, equities research analysts plainly believe LSI Industries is more favorable than Lighting Science Group.

Profitability

This table compares LSI Industries and Lighting Science Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LSI Industries -0.64% 4.38% 2.65%
Lighting Science Group N/A N/A N/A

Summary

LSI Industries beats Lighting Science Group on 9 of the 13 factors compared between the two stocks.

About LSI Industries

LSI Industries Inc. provides corporate visual image solutions in the United States, Canada, Australia, and Latin America. It operates in three segments: Lighting, Graphics, and Technology. The Lighting segment manufactures and markets outdoor and indoor lighting and lighting controls for the commercial, industrial, and multi-site retail markets, including the petroleum/convenience store, quick-service, and automotive markets. It primarily offers exterior area, interior, canopy, and landscape lightings, as well as lighting controls, light poles, and photometric layouts; lighting system design services; and solid-state LED solutions. The Graphics segment manufactures and sells exterior and interior visual image elements used in graphics displays and visual image programs in various markets that include the petroleum/convenience store market, quick-service restaurant, grocery, and multi-site retail operations. Its products comprise signage and canopy graphics, pump dispenser graphics, building fascia graphics and ACM systems, electrical signage, decals, interior signage and marketing graphics, aisle markers, wall mural graphics, fleet graphics, prototype program graphics, video boards, menu boards, and digital signage and media content management products. This segment also provides installation management services for the installation of interior or exterior products. The Technology segment designs, engineers, and manufactures electronic circuit boards, assemblies, and sub-assemblies for use in commercial, industrial, and multi-site retail markets. The company was founded in 1976 and is headquartered in Cincinnati, Ohio.

About Lighting Science Group

Lighting Science Group Corporation designs, develops, and markets general illumination products that use light emitting diodes (LEDs) as their light source for retailers and original equipment manufacturers in the United States. It offers a range of LED retrofit lamps to fit into existing light fixtures as replacements for traditional incandescent, compact fluorescent, and halogen lamps; and LED luminaires comprising FreeLED, a street lighting solution that uses solar energy as its power source. The company also provides biological lighting products, which include Good Night and Good Day circadian replacement lamps, VividGro grow light product, MyNature Coastal lamps and outdoor luminaires, and MyNature Grow lighting lamps and high bay luminaires. It serves Residential and office, Retail and hospitality, Government-owned and private infrastructure, and School and university markets through branded and co-branded private label programs, direct sales force, distributors, and independent sales agents. Lighting Science Group Corporation was incorporated in 1988 and is headquartered in West Warwick, Rhode Island.

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