Critical Survey: Multi Ways (NYSE:MWG) and Daktronics (NASDAQ:DAKT)

Multi Ways (NYSE:MWG) and Daktronics (NASDAQ:DAKT) are both small-cap industrial products companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.

Volatility and Risk

Multi Ways has a beta of 1.59, meaning that its stock price is 59% more volatile than the S&P 500. Comparatively, Daktronics has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500.

Insider and Institutional Ownership

0.8% of Multi Ways shares are held by institutional investors. Comparatively, 61.7% of Daktronics shares are held by institutional investors. 8.1% of Daktronics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Multi Ways	N/A	N/A	N/A
Daktronics	3.62%	19.61%	8.96%

Analyst Recommendations

This is a summary of recent ratings for Multi Ways and Daktronics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Multi Ways	0	0	0	0	0.00
Daktronics	0	0	0	1	4.00

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Multi Ways	$36.02 million	0.26	$1.79 million	N/A	N/A
Daktronics	$820.60 million	0.97	$34.62 million	$0.25	67.44

Daktronics has higher revenue and earnings than Multi Ways.

Summary

Daktronics beats Multi Ways on 10 of the 11 factors compared between the two stocks.

About Multi Ways

Multi Ways Holdings Limited supplies a range of heavy construction equipment for sales and rental in Singapore, Australia, and internationally. The company engages in the supplying and rental of new and used heavy construction equipment in the infrastructure, building construction, mining, offshore and marine, and oil and gas industries. It offers earth-moving equipment, such as bulldozers, off-terrain dump trucks, excavators, and wheel loaders; material-handling equipment, such as crawler cranes, rough terrain cranes, scissor lifts, forklifts, boom-lifts, and telescopic handlers; road-building equipment comprising motor graders, vibrating compactors, asphalt finishers, skid loaders, backhoe loaders, hand rollers, and mini excavators; and air compressors, generators, lighting towers, and welding machines. The company was founded in 1988 and is headquartered in Singapore. Multi Ways Holdings Limited operates as a subsidiary of MWE Investments Limited.

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.