Analyzing Avid Technology (AVID) & TransAct Technologies (TACT)
TransAct Technologies (NASDAQ: TACT) and Avid Technology (NASDAQ:AVID) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.
Insider and Institutional Ownership
38.3% of TransAct Technologies shares are owned by institutional investors. Comparatively, 71.8% of Avid Technology shares are owned by institutional investors. 11.6% of TransAct Technologies shares are owned by insiders. Comparatively, 7.5% of Avid Technology shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares TransAct Technologies and Avid Technology’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings for TransAct Technologies and Avid Technology, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
TransAct Technologies presently has a consensus target price of $11.00, suggesting a potential downside of 16.67%. Avid Technology has a consensus target price of $4.50, suggesting a potential downside of 24.50%. Given TransAct Technologies’ stronger consensus rating and higher possible upside, equities analysts clearly believe TransAct Technologies is more favorable than Avid Technology.
Volatility and Risk
TransAct Technologies has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, Avid Technology has a beta of 1.78, suggesting that its share price is 78% more volatile than the S&P 500.
TransAct Technologies pays an annual dividend of $0.36 per share and has a dividend yield of 2.7%. Avid Technology does not pay a dividend. TransAct Technologies pays out 53.7% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares TransAct Technologies and Avid Technology’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TransAct Technologies||$57.24 million||1.70||$3.61 million||$0.67||19.70|
|Avid Technology||$511.93 million||0.48||$48.21 million||($0.18)||-33.11|
Avid Technology has higher revenue and earnings than TransAct Technologies. Avid Technology is trading at a lower price-to-earnings ratio than TransAct Technologies, indicating that it is currently the more affordable of the two stocks.
TransAct Technologies beats Avid Technology on 11 of the 16 factors compared between the two stocks.
TransAct Technologies Company Profile
TransAct Technologies Incorporated (TransAct) designs, develops and sells market-specific solutions, including printers, terminals, software and other products for transaction-based and other industries. The Company operates through the segment, which includes design, development, assembly and marketing of transaction printers and terminals, and providing printer and terminal related software, services, supplies and spare parts. Its thermal, inkjet and impact printers and terminals generate labels and transaction records, such as receipts, tickets, coupons, register journals and other documents, as well as printed logging, and plotting of oil field and well drilling data. Its products are sold under the AccuDate, Ithaca, RESPONDER, Epic, EPICENTRAL and Printrex brand names. It focuses on various markets, such as food safety, banking and point-of-sale (POS), casino and gaming, lottery and Printrex, Inc. (Printrex), which serves the oil and gas, medical and mobile printing markets.
Avid Technology Company Profile
Avid Technology, Inc. is a provider of an open and integrated technology platform, along with applications and services that enable the creation, distribution and monetization of audio and video content. The Company develops, markets, sells and supports software and hardware for digital media content production, management, secured content storage and distribution. The Company’s products are used in production and post-production facilities; film studios; network, affiliate, independent and cable television stations; recording studios; live-sound performance venues; advertising agencies; government and educational institutions; corporate communication departments, and by independent video and audio creative professionals, as well as aspiring professionals and enthusiasts. Projects produced using its products include feature films, television programs, live events, news broadcasts, commercials, music, video and other digital media content.
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