Corning (NYSE: GLW) and Daktronics (NASDAQ:DAKT) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, institutional ownership, profitabiliy, analyst recommendations and dividends.

Profitability

This table compares Corning and Daktronics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Corning 24.16% 11.67% 6.52%
Daktronics 1.76% 5.14% 2.90%

Dividends

Corning pays an annual dividend of $0.62 per share and has a dividend yield of 2.1%. Daktronics pays an annual dividend of $0.28 per share and has a dividend yield of 2.9%. Corning pays out 27.9% of its earnings in the form of 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. Daktronics has increased its dividend for 6 consecutive years. Daktronics is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current ratings for Corning and Daktronics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Corning 1 9 4 0 2.21
Daktronics 0 0 2 0 3.00

Corning presently has a consensus target price of $27.29, indicating a potential downside of 6.79%. Daktronics has a consensus target price of $12.25, indicating a potential upside of 27.60%. Given Daktronics’ stronger consensus rating and higher possible upside, analysts clearly believe Daktronics is more favorable than Corning.

Earnings and Valuation

This table compares Corning and Daktronics’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Corning $9.85 billion 2.68 $2.77 billion $2.22 13.19
Daktronics $586.54 million 0.72 $34.81 million $0.23 41.74

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

Insider and Institutional Ownership

72.8% of Corning shares are owned by institutional investors. Comparatively, 51.5% of Daktronics shares are owned by institutional investors. 0.6% of Corning shares are owned by insiders. Comparatively, 8.2% of Daktronics shares are owned by 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.

Risk and Volatility

Corning has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, Daktronics has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500.

Summary

Corning beats Daktronics on 11 of the 17 factors compared between the two stocks.

About Corning

Corning Incorporated is engaged in manufacturing specialty glass and ceramics. Its segments include Display Technologies, Optical Communications, Environmental Technologies, Specialty Materials, Life Sciences and All Other. The Display Technologies segment manufactures glass substrates for flat panel liquid crystal displays (LCDs). The Optical Communications segment manufactures carrier and enterprise network components for the telecommunications industry. The Environmental Technologies segment manufactures ceramic substrates and filters for automotive and diesel emission control applications. As of December 31, 2016, the Specialty Materials segment manufactured products, which provided more than 150 material formulations for glass, glass ceramics and fluoride crystals. The Life Sciences segment manufactures glass and plastic labware, equipment, media and reagents. The All Other segment consists of its Pharmaceutical Technologies business and non-LCD glass business, and among others.

About Daktronics

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.

Receive News & Stock Ratings for Corning Incorporated Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Corning Incorporated and related stocks with our FREE daily email newsletter.