Financial Contrast: Socket Mobile (NASDAQ:SCKT) and Trans-Lux (OTCMKTS:TNLX)

Socket Mobile (NASDAQ:SCKT) and Trans-Lux (OTCMKTS:TNLX) are both small-cap technology companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, institutional ownership, earnings, profitability and dividends.

Insider & Institutional Ownership

3.8% of Socket Mobile shares are owned by institutional investors. Comparatively, 11.9% of Trans-Lux shares are owned by institutional investors. 54.8% of Socket Mobile shares are owned by company insiders. Comparatively, 58.7% of Trans-Lux shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Socket Mobile and Trans-Lux”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Socket Mobile	$15.08 million	0.36	-$14.38 million	($1.85)	-0.36
Trans-Lux	$12.86 million	0.01	-$3.48 million	($0.25)	-0.04

Trans-Lux has lower revenue, but higher earnings than Socket Mobile. Socket Mobile is trading at a lower price-to-earnings ratio than Trans-Lux, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Socket Mobile and Trans-Lux’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Socket Mobile	-107.50%	-229.41%	-89.45%
Trans-Lux	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current recommendations and price targets for Socket Mobile and Trans-Lux, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Socket Mobile	1	0	0	0	1.00
Trans-Lux	0	0	0	0	0.00

Risk & Volatility

Socket Mobile has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, Trans-Lux has a beta of -1.85, indicating that its share price is 285% less volatile than the S&P 500.

Summary

Trans-Lux beats Socket Mobile on 8 of the 12 factors compared between the two stocks.

About Socket Mobile

Socket Mobile, Inc. provides data capture and delivery solutions in the United States, Europe, Asia, and internationally. Its products and solutions are integrated into mobile applications for applications in the areas of point of sale, commercial services, asset tracking, manufacturing and quality control processes, transportation and logistics, event management, medical, and education. The company also offers cordless data capture devices that connect through Bluetooth and work with applications running on smartphones, mobile computers, and tablets; SocketScan and DuraScan 700 series, companion scanners and 800 series, attachable scanners, and wearables; and DuraSled, a barcode scanning sled that protects phones from impact damage and provides charging solutions. In addition, it offers D600, a handheld model to reads and writes various types of electronic SmartTags and transfers data with near-field communication (NFC); S550, a contactless membership card reader/writer; and S370 product that supports barcode scanning, and NFC reading and writing technologies. Further, the company provides SocketCam C820 and C860, which are camera-based barcode scanners; software developer kits, such as CaptureSDK that enables the App providers to modify captured data, control the placement of the barcoded or RFID data in their applications, and control the feedback to the user. It serves retail, commercial services, industrial and manufacturing, transportation and logistics, and healthcare industries through a network of distributors, online resellers, and application providers, as well as online stores. The company was formerly known as Socket Communications, Inc. and changed its name to Socket Mobile, Inc. in April 2008. Socket Mobile, Inc. was founded in 1992 and is headquartered in Fremont, California.

About Trans-Lux

Trans-Lux Corporation engages in the design and manufacture of digital display solutions and fixed digit scoreboards. It operates in two segments, Digital Product Sales; and Digital Product Lease and Maintenance. The Digital Product Sales segment sells indoor and outdoor digital product signage products. The Digital Product Lease and Maintenance segment is involved in the lease and maintenance of indoor and outdoor digital product signage. The company offers LED display systems for use by sports arenas and stadiums; financial institutions, including brokerage firms, banks, energy companies, insurance companies, and mutual fund companies; educational institutions; outdoor advertising companies; corporate and government communication centers; retail outlets; casinos, racetracks and other gaming establishments; airports, train stations, bus terminals, and other transportation facilities; movie theatres; and health maintenance organizations, as well as in various other applications. It also provides TLVision, which consists of full-color video products for use in posting alphanumeric data and displaying of full HD video; and turnkey installation and support services. The company markets its products through direct sales representatives, and a network of independent dealers and distributors in the United States and Canada; and internal salespeople and independent distributors in the rest of North America, Europe, the Middle East, South America, Africa, the Far East, and Australia. Trans-Lux Corporation was incorporated in 1920 and is headquartered in New York, New York. Trans-Lux Corporation operates as a subsidiary of Unilumin North America Inc.