Critical Contrast: Hammond Power Solutions (OTCMKTS:HMDPF) vs. Daktronics (NASDAQ:DAKT)

Hammond Power Solutions (OTCMKTS:HMDPF) and Daktronics (NASDAQ:DAKT) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Earnings and Valuation

This table compares Hammond Power Solutions and Daktronics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hammond Power Solutions	N/A	N/A	N/A	C$0.39	398.49
Daktronics	$756.48 million	1.79	-$10.12 million	$0.13	213.31

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

Insider & Institutional Ownership

30.8% of Hammond Power Solutions shares are held by institutional investors. Comparatively, 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 endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Hammond Power Solutions and Daktronics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hammond Power Solutions	0	0	1	0	3.00
Daktronics	0	2	0	0	2.00

Profitability

This table compares Hammond Power Solutions and Daktronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hammond Power Solutions	N/A	N/A	N/A
Daktronics	0.96%	15.42%	8.15%

Summary

Daktronics beats Hammond Power Solutions on 6 of the 10 factors compared between the two stocks.

About Hammond Power Solutions

Hammond Power Solutions Inc., together with its subsidiaries, engages in the design, manufacture, and sale of various transformers in Canada, the United States, Mexico, and India. It offers custom electrical magnetics, cast resin, custom liquid filled distribution and power transformers, and standard electrical transformers to the electrical and electronic industries. The company also provides buck-boost, control, distribution, drive isolation, encapsulated, furnace, multi-pulse, pad mounted, regulating, and medium voltage distribution transformers, as well as reactors, active harmonic filters, dV/dT filters, and unitized substations. It serves renewable energy, drive and automation, energy distribution, infrastructure, irrigation, and industrial markets. Hammond Power Solutions Inc. was founded in 1917 and is headquartered in Guelph, 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.