Acuity (AYI) Competitors

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

Does the media favor DCI or AYI?

In the previous week, Acuity had 3 more articles in the media than Donaldson. MarketBeat recorded 10 mentions for Acuity and 7 mentions for Donaldson. Donaldson's average media sentiment score of 0.99 beat Acuity's score of 0.89 indicating that Donaldson is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Donaldson	4 Very Positive mention(s)	2 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Acuity	4 Very Positive mention(s)	1 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more risk & volatility, DCI or AYI?

Donaldson has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Acuity has a beta of 1.64, indicating that its share price is 64% more volatile than the S&P 500.

Do institutionals and insiders hold more shares of DCI or AYI?

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

Do analysts rate DCI or AYI?

Donaldson presently has a consensus target price of $80.33, suggesting a potential upside of 0.73%. Acuity has a consensus target price of $395.17, suggesting a potential upside of 13.83%. Given Acuity's stronger consensus rating and higher possible upside, analysts plainly believe Acuity is more favorable than Donaldson.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Donaldson	1 Sell rating(s)	1 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.25
Acuity	0 Sell rating(s)	2 Hold rating(s)	7 Buy rating(s)	1 Strong Buy rating(s)	2.90

Which has preferable valuation & earnings, DCI or AYI?

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
Donaldson	$3.69B	2.50	$367M	$3.05	26.15
Acuity	$4.35B	2.45	$396.60M	$12.53	27.70

Is DCI or AYI a better dividend stock?

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

Is DCI or AYI more profitable?

Donaldson has a net margin of 9.94% compared to Acuity's net margin of 9.13%. Donaldson's return on equity of 29.50% beat Acuity's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Donaldson	9.94%	29.50%	14.79%
Acuity	9.13%	20.81%	12.00%

Summary

Acuity beats Donaldson on 13 of the 20 factors compared between the two stocks.