Comparing Acuity Brands (NYSE:AYI) & Dialight (OTCMKTS:DIALF)

Acuity Brands (NYSE:AYIGet Free Report) and Dialight (OTCMKTS:DIALFGet Free Report) are both construction companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.

Dividends

Acuity Brands pays an annual dividend of $0.60 per share and has a dividend yield of 0.2%. Dialight pays an annual dividend of $0.14 per share and has a dividend yield of 8.7%. Acuity Brands pays out 5.0% of its earnings in the form of a dividend. Dialight pays out 61.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Acuity Brands has increased its dividend for 1 consecutive years.

Institutional and Insider Ownership

98.2% of Acuity Brands shares are owned by institutional investors. Comparatively, 31.8% of Dialight shares are owned by institutional investors. 1.5% of Acuity Brands shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Acuity Brands and Dialight’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Acuity Brands $3.95 billion 1.97 $346.00 million $11.96 21.17
Dialight N/A N/A N/A $0.24 7.05

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Acuity Brands and Dialight, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Acuity Brands 0 2 2 0 2.50
Dialight 0 0 0 0 N/A

Acuity Brands presently has a consensus price target of $289.25, indicating a potential upside of 14.26%. Given Acuity Brands’ higher possible upside, equities research analysts plainly believe Acuity Brands is more favorable than Dialight.

Profitability

This table compares Acuity Brands and Dialight’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Acuity Brands 9.81% 21.22% 12.57%
Dialight N/A N/A N/A

Summary

Acuity Brands beats Dialight on 12 of the 13 factors compared between the two stocks.

About Acuity Brands

(Get Free Report)

Acuity Brands, Inc. provides lighting, lighting controls, building management system, location-aware applications in the United States and internationally. The company operates in two segments, Acuity Brands Lighting and Lighting Controls (ABL); and the Intelligent Spaces Group (ISG). The ABL segment provides commercial, architectural, and specialty lighting solutions, as well as lighting controls and components for various indoor and outdoor applications under the A-Light, Aculux, American Electric Lighting, Cyclone, Dark to Light, eldoLED, Eureka, Gotham, Healthcare Lighting, Holophane, Hydrel, Indy, IOTA, Juno, Lithonia Lighting, Luminaire LED, Luminis, Mark Architectural Lighting, nLight, OPTOTRONIC, Peerless, RELOCWiring Solutions, and Sensor Switch. This segment serves electrical distributors, retail home improvement centers, electric utilities, national accounts, original equipment manufacturers, digital retailers, lighting showrooms, and energy service companies. The ISG segment offers building management solutions, such as products for controlling heating, ventilation, air conditioning, lighting, shades, refrigeration, and building access that deliver end-to-end optimization of those building systems; and building management software that enhances building system management and automates labor intensive tasks. This segment serves system integrators, as well as retail stores, airports, and enterprise campuses. The company offers its products and solutions under the Atrius, Distech Controls, and KE2 Therm Solutions brands. Acuity Brands, Inc. was incorporated in 2001 and is headquartered in Atlanta, Georgia.

About Dialight

(Get Free Report)

Dialight plc, together with its subsidiaries, primarily develops, manufactures, and supplies LED lighting solutions for use in hazardous and industrial applications in North America, Europe, the Middle East, Africa, and internationally. The company operates in two segments, Lighting, and Signals & Components. It offers high and low bays, and high outputs; conveyor, street, area, and flood lights; LED linear fixtures, such as low profile/top conduit linear, stainless steel linear, glass reinforced polyester linear, battery backup linear, and NSF linear; and wallpacks/bulkheads products. The company also provides lighting products for control systems and obstruction solutions. In addition, it offers signals and components, such as panel mount and circuit board indicators; and traffic, vehicle, and rail products. It serves heavy industry, pulp and paper, power generation, and oil and gas sectors. Dialight plc was founded in 1938 and is headquartered in London, the United Kingdom.

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