Reviewing Daktronics (NASDAQ:DAKT) & Legend Power Systems (OTCMKTS:LPSIF)

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Legend Power Systems and Daktronics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Legend Power Systems	0	0	0	0	0.00
Daktronics	0	0	1	1	3.50

Daktronics has a consensus target price of $26.00, suggesting a potential upside of 55.69%. Given Daktronics’ stronger consensus rating and higher probable upside, analysts plainly believe Daktronics is more favorable than Legend Power Systems.

Profitability

This table compares Legend Power Systems and Daktronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Legend Power Systems	N/A	N/A	N/A
Daktronics	-1.34%	15.29%	7.48%

Valuation & Earnings

This table compares Legend Power Systems and Daktronics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Legend Power Systems	N/A	N/A	N/A	($0.04)	-2.05
Daktronics	$756.48 million	1.08	-$10.12 million	($0.44)	-37.95

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

Insider and Institutional Ownership

61.7% of Daktronics shares are held by institutional investors. 5.3% of Daktronics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Daktronics beats Legend Power Systems on 9 of the 12 factors compared between the two stocks.

About Legend Power Systems

Legend Power Systems Inc., together with its subsidiaries, operates as an electrical energy conservation company in Canada and the United States. It assembles, markets, and sells SmartGATE, a patented device that enables dynamic power management of commercial or industrial Buildings. The company was founded in 1987 and is based in Vancouver, Canada.

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.