Head to Head Analysis: Microvision (MVIS) versus Daktronics (DAKT)

Microvision (NASDAQ: MVIS) and Daktronics (NASDAQ:DAKT) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, dividends, earnings, risk and profitability.

Volatility and Risk

Microvision has a beta of 0.21, indicating that its share price is 79% less volatile than the S&P 500. Comparatively, Daktronics has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500.

Insider & Institutional Ownership

30.8% of Microvision shares are owned by institutional investors. Comparatively, 51.3% of Daktronics shares are owned by institutional investors. 3.0% of Microvision shares are owned by company insiders. Comparatively, 8.2% of Daktronics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Microvision -224.93% -677.56% -107.29%
Daktronics 1.76% 5.14% 2.90%

Dividends

Daktronics pays an annual dividend of $0.28 per share and has a dividend yield of 3.0%. Microvision does not pay a dividend. Daktronics pays out 121.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings & Valuation

This table compares Microvision and Daktronics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Microvision $9.15 million 16.23 -$19.53 million ($0.33) -6.61
Daktronics $586.54 million 0.71 $34.81 million $0.23 40.87

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Microvision and Daktronics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Microvision 0 0 3 0 3.00
Daktronics 0 0 2 0 3.00

Microvision currently has a consensus target price of $3.83, suggesting a potential upside of 75.84%. Daktronics has a consensus target price of $12.25, suggesting a potential upside of 30.32%. Given Microvision’s higher probable upside, equities research analysts plainly believe Microvision is more favorable than Daktronics.

Summary

Daktronics beats Microvision on 10 of the 14 factors compared between the two stocks.

About Microvision

Microvision, Inc. is a developer of laser beam scanning (LBS) technology. The Company markets its technology under the brand name, PicoP. It has developed PicoP scanning technology that can be adopted by its customers to create high-resolution miniature projection, and three-dimensional sensing and image capture solutions that use laser diodes as the light source. The Company offers key components for inclusion in a scanning engine, including its Micro-Electrical Mechanical Systems (MEMS) and Application-Specific Integrated Circuits (ASICs). Its PicoP scanning technology incorporates its expertise in two-dimensional MEMS, lasers, optics and electronics to create a small form factor scanning engine with lower power needs. It licenses PicoP scanning technology to original design manufacturers (ODMs) or original equipment manufacturers (OEMs). Its technology creates a platform that can support multiple applications and markets, including enterprise, medical, industrial and automotive.

About Daktronics

Daktronics, Inc. is a supplier of electronic scoreboards, electronic display systems, digital messaging solutions, software and services for sporting, commercial and transportation applications. The Company operates through five segments: Commercial, Live Events, High School Park and Recreation, Transportation, and International. The Company offers a range of products, from small scoreboards and electronic displays to video display systems, as well as related control, timing and sound systems. It designs, markets, manufactures, installs and services integrated systems displaying real-time data, graphics, animation and video. Its product families include video displays, scoreboards and timing systems, message displays, intelligent transportation systems (ITS) dynamic message signs, space availability displays, audio systems, advertising displays, digit and price displays and digital messaging systems.

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