Critical Survey: Daktronics (NASDAQ:DAKT) and Varta (OTCMKTS:VARGF)

Varta (OTCMKTS:VARGF) and Daktronics (NASDAQ:DAKT) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.

Valuation and Earnings

This table compares Varta and Daktronics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Varta	N/A	N/A	N/A	N/A	N/A
Daktronics	$756.48 million	1.28	-$10.12 million	$1.20	16.60

Varta has higher earnings, but lower revenue than Daktronics.

Analyst Recommendations

This is a summary of current ratings and price targets for Varta and Daktronics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Varta	0	0	0	0	0.00
Daktronics	0	1	1	1	3.00

Daktronics has a consensus price target of $26.00, indicating a potential upside of 30.52%. Given Daktronics’ stronger consensus rating and higher possible upside, analysts clearly believe Daktronics is more favorable than Varta.

Institutional and Insider Ownership

61.7% of Daktronics shares are owned by institutional investors. 5.3% of Daktronics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Varta	N/A	N/A	N/A
Daktronics	1.51%	14.64%	7.47%

Summary

Daktronics beats Varta on 10 of the 10 factors compared between the two stocks.

About Varta

Varta AG, through its subsidiaries, engages in the research, development, production, and sale of micro and household batteries, large-format batteries, battery solutions, and energy storage systems in Europe, Asia, North America, and internationally. It operates in five segments: Micro Batteries, Lithium-Ion CoinPower, Consumer Batteries, Energy Storage Systems, and Other. The Micro Batteries segments offers zinc-air batteries under the power one and ecopack brand names for use in microbatteries and hearing aid devices. The Lithium-Ion CoinPower segment provides lithium-ion battery solutions for wireless headphones for medical devices to measure hypertension, blood sugar, and other bodily functions, as well as the power supply for COVID19 antibody tests. The Consumer Batteries segment offers household batteries, rechargeable batteries, power banks, chargers, and lights. The Energy Storage Systems segment provides energy storage solutions for the home and mass storage markets. The Other segment offers lithium-ion large cells product for rechargeable battery solutions for industrial and original equipment manufacturers for applications, such as servers, applications in alarm systems, or smart meters; and produces rechargeable, standardized, and customized battery packs for industrial and wireless applications. This segment is also involved in the development, system integration, and assembly of lithium-ion battery packs for portable industrial, communication devices, electric power tool, home, garden, and medical applications. The company was founded in 1887 and is headquartered in Ellwangen, Germany. Varta AG is a subsidiary of Montana Tech Components AG.

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.