Hayward (NYSE:HAYW) and Dialight (OTCMKTS:DIALF) Critical Analysis

Hayward (NYSE:HAYW) and Dialight (OTCMKTS:DIALF) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.

Profitability

This table compares Hayward and Dialight’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hayward	8.25%	9.46%	4.21%
Dialight	N/A	N/A	N/A

Insider and Institutional Ownership

31.8% of Dialight shares are held by institutional investors. 3.2% of Hayward shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Hayward and Dialight’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hayward	$994.89 million	3.11	$80.69 million	$0.36	40.08
Dialight	N/A	N/A	N/A	$0.24	7.00

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

Analyst Recommendations

This is a breakdown of recent ratings for Hayward and Dialight, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hayward	0	4	1	0	2.20
Dialight	0	0	0	0	N/A

Hayward currently has a consensus price target of $14.70, indicating a potential upside of 1.87%. Given Hayward’s higher possible upside, analysts plainly believe Hayward is more favorable than Dialight.

Summary

Hayward beats Dialight on 9 of the 10 factors compared between the two stocks.

About Hayward

Hayward Holdings, Inc. designs, manufactures, and markets a portfolio of pool equipment and associated automation systems in North America, Europe, and internationally. The company offers pool equipment, including pumps, filters, robotics, suction and pressure cleaners, gas heaters and heat pumps, water features and landscape lighting, water sanitizers, salt chlorine generators, safety equipment, and in-floor automated cleaning systems, as well as LED illumination solutions. It sells its products through specialty distributors, retailers, and buying groups. The company was founded in 1925 and is headquartered in Charlotte, North Carolina.

About Dialight

Dialight plc, together with its subsidiaries, primarily develops, manufactures, and supplies LED lighting solutions for use in hazardous and industrial applications in North America, Europe, the Middle East, Africa, and internationally. The company operates in two segments, Lighting, and Signals & Components. It offers high and low bays, and high outputs; conveyor, street, area, and flood lights; LED linear fixtures, such as low profile/top conduit linear, stainless steel linear, glass reinforced polyester linear, battery backup linear, and NSF linear; and wallpacks/bulkheads products. The company also provides lighting products for control systems and obstruction solutions. In addition, it offers signals and components, such as panel mount and circuit board indicators; and traffic, vehicle, and rail products. It serves heavy industry, pulp and paper, power generation, and oil and gas sectors. Dialight plc was founded in 1938 and is headquartered in London, the United Kingdom.