Critical Analysis: NeoVolta (NASDAQ:NEOVW) vs. Daktronics (NASDAQ:DAKT)

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

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 hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Daktronics	0.96%	15.42%	8.15%
NeoVolta	N/A	N/A	N/A

Valuation & Earnings

This table compares Daktronics and NeoVolta”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Daktronics	$756.48 million	1.21	-$10.12 million	$0.13	144.77
NeoVolta	$14.49 million	N/A	N/A	N/A	N/A

NeoVolta has lower revenue, but higher earnings than Daktronics.

Analyst Recommendations

This is a breakdown of recent ratings for Daktronics and NeoVolta, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Daktronics	0	2	1	0	2.33
NeoVolta	0	0	0	0	0.00

Daktronics currently has a consensus target price of $26.00, suggesting a potential upside of 38.15%. Given Daktronics’ stronger consensus rating and higher probable upside, equities analysts clearly believe Daktronics is more favorable than NeoVolta.

Summary

Daktronics beats NeoVolta on 9 of the 9 factors compared between the two stocks.

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.

About NeoVolta

NeoVolta Inc. designs, manufactures, and sells energy storage systems in the United States. It provides NV14, NV14-K, and NV 24 energy storage systems, which stores and uses energy through batteries and an inverter at residential or commercial sites. The company markets and sells its products directly to certified solar installers and solar equipment distributors. NeoVolta Inc. was formed in 2018 and is headquartered in Poway, California.