Acuity (AYI) Competitors

Acuity (NYSE:AYI) and Donaldson (NYSE:DCI) are related companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, risk, media sentiment, valuation, earnings, profitability and institutional ownership.

Does the media prefer AYI or DCI?

In the previous week, Acuity had 3 more articles in the media than Donaldson. MarketBeat recorded 15 mentions for Acuity and 12 mentions for Donaldson. Donaldson's average media sentiment score of 1.45 beat Acuity's score of 1.39 indicating that Donaldson is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Acuity	12 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Donaldson	12 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is AYI or DCI more profitable?

Donaldson has a net margin of 9.94% compared to Acuity's net margin of 9.63%. Donaldson's return on equity of 29.50% beat Acuity's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Acuity	9.63%	20.35%	11.98%
Donaldson	9.94%	29.50%	14.79%

Which has better earnings and valuation, AYI or DCI?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Acuity	$3.84B	2.75	$422.60M	$12.69	27.20
Donaldson	$3.69B	2.58	$367M	$3.05	26.80

Which has more volatility and risk, AYI or DCI?

Acuity has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500. Comparatively, Donaldson has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.

Do analysts recommend AYI or DCI?

Acuity presently has a consensus price target of $352.60, indicating a potential upside of 2.16%. Donaldson has a consensus price target of $80.33, indicating a potential downside of 1.71%. Given Acuity's stronger consensus rating and higher probable upside, equities analysts plainly believe Acuity is more favorable than Donaldson.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Acuity	0 Sell rating(s)	2 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.67
Donaldson	1 Sell rating(s)	1 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.00

Is AYI or DCI a better dividend stock?

Acuity pays an annual dividend of $0.68 per share and has a dividend yield of 0.2%. Donaldson pays an annual dividend of $1.20 per share and has a dividend yield of 1.5%. Acuity pays out 5.4% of its earnings in the form of a dividend. Donaldson pays out 39.3% 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 has raised its dividend for 3 consecutive years and Donaldson has raised its dividend for 38 consecutive years. Donaldson is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Do institutionals and insiders believe in AYI or DCI?

98.2% of Acuity shares are owned by institutional investors. Comparatively, 82.8% of Donaldson shares are owned by institutional investors. 2.8% of Acuity shares are owned by company insiders. Comparatively, 2.7% of Donaldson shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Acuity beats Donaldson on 13 of the 19 factors compared between the two stocks.