Capstone Companies (OTCMKTS:CAPC) and LSI Industries (NASDAQ:LYTS) are both small-cap industrial products companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.
Institutional and Insider Ownership
70.1% of LSI Industries shares are held by institutional investors. 38.5% of Capstone Companies shares are held by insiders. Comparatively, 2.9% of LSI Industries shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This table compares Capstone Companies and LSI Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
LSI Industries pays an annual dividend of $0.20 per share and has a dividend yield of 4.5%. Capstone Companies does not pay a dividend. LSI Industries pays out 90.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Valuation & Earnings
This table compares Capstone Companies and LSI Industries’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Capstone Companies||$36.75 million||0.20||$2.07 million||N/A||N/A|
|LSI Industries||$342.02 million||0.34||-$19.54 million||$0.22||20.27|
Capstone Companies has higher earnings, but lower revenue than LSI Industries.
Volatility & Risk
Capstone Companies has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, LSI Industries has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500.
This is a summary of current recommendations for Capstone Companies and LSI Industries, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
LSI Industries has a consensus target price of $11.27, suggesting a potential upside of 152.62%. Given LSI Industries’ higher possible upside, analysts clearly believe LSI Industries is more favorable than Capstone Companies.
LSI Industries beats Capstone Companies on 7 of the 13 factors compared between the two stocks.
Capstone Companies Company Profile
Capstone Companies, Inc., through its subsidiaries, develops, markets, and sells consumer home light-emitting diode (LED) lighting products in North America and internationally. It offers wireless remote-controlled LED accent, LED under cabinet, LED solar patio, LED motion sensor, and LED wall utility lights, as well as LED gooseneck lanterns, CPC power failure bulbs, and wireless remote-control outlets. The company markets its products under the CAPI, Capstone Lighting, and Duracell brand names, as well as under the Hoover Home LED licensed brand through a network of direct independent sales force, retailers, and distributors. It sells its products through retail warehouse clubs, hardware centers, and e-commerce Websites. The company was formerly known as CHDT Corporation and changed its name to Capstone Companies, Inc. in June 2012. Capstone Companies, Inc. was incorporated in 1986 and is headquartered in Deerfield Beach, Florida.
LSI Industries Company Profile
LSI Industries Inc. provides corporate visual image solutions in the United States, Canada, Australia, and Latin America. It operates in three segments: Lighting, Graphics, and Technology. The Lighting segment manufactures and markets outdoor and indoor lighting and lighting controls for the commercial, industrial, and multi-site retail markets, including the petroleum/convenience store, quick-service, and automotive markets. It primarily offers exterior area, interior, canopy, and landscape lightings, as well as lighting controls, light poles, and photometric layouts; lighting system design services; and solid-state LED solutions. The Graphics segment manufactures and sells exterior and interior visual image elements used in graphics displays and visual image programs in various markets that include the petroleum/convenience store market, quick-service restaurant, grocery, and multi-site retail operations. Its products comprise signage and canopy graphics, pump dispenser graphics, building fascia graphics and ACM systems, electrical signage, decals, interior signage and marketing graphics, aisle markers, wall mural graphics, fleet graphics, prototype program graphics, video boards, menu boards, and digital signage and media content management products. This segment also provides installation management services for the installation of interior or exterior products. The Technology segment designs, engineers, and manufactures electronic circuit boards, assemblies, and sub-assemblies for use in commercial, industrial, and multi-site retail markets. The company was founded in 1976 and is headquartered in Cincinnati, Ohio.
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