Mitek Systems (NASDAQ: TACT) and TransAct Technologies (NASDAQ:TACT) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, analyst recommendations, earnings, dividends and profitability.

Valuation and Earnings

This table compares Mitek Systems and TransAct Technologies’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mitek Systems $45.39 million 7.41 $14.09 million $0.21 42.38
TransAct Technologies $56.31 million 1.91 $3.21 million $0.60 24.25

Mitek Systems has higher earnings, but lower revenue than TransAct Technologies. TransAct Technologies is trading at a lower price-to-earnings ratio than Mitek Systems, indicating that it is currently the more affordable of the two stocks.

Dividends

TransAct Technologies pays an annual dividend of $0.36 per share and has a dividend yield of 2.5%. Mitek Systems does not pay a dividend. TransAct Technologies pays out 60.0% of its earnings in the form of a dividend.

Profitability

This table compares Mitek Systems and TransAct Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mitek Systems 5.75% 4.74% 3.80%
TransAct Technologies 5.91% 18.19% 14.03%

Risk & Volatility

Mitek Systems has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, TransAct Technologies has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.

Institutional & Insider Ownership

43.7% of Mitek Systems shares are owned by institutional investors. Comparatively, 46.7% of TransAct Technologies shares are owned by institutional investors. 8.5% of Mitek Systems shares are owned by insiders. Comparatively, 12.5% of TransAct Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for Mitek Systems and TransAct Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mitek Systems 0 0 1 0 3.00
TransAct Technologies 0 0 1 0 3.00

Mitek Systems presently has a consensus target price of $17.50, suggesting a potential upside of 96.63%. TransAct Technologies has a consensus target price of $17.00, suggesting a potential upside of 16.84%. Given Mitek Systems’ higher probable upside, equities analysts plainly believe Mitek Systems is more favorable than TransAct Technologies.

Summary

TransAct Technologies beats Mitek Systems on 9 of the 14 factors compared between the two stocks.

Mitek Systems Company Profile

Mitek Systems, Inc. develops, markets, and sells mobile image capture and identity verification software solutions for enterprise customers worldwide. The company's solutions are embedded in native mobile apps and mobile optimized Websites to enhance mobile user experiences and transactions. It offers Mobile Deposit that allows individuals and businesses to remotely deposit checks using their camera-equipped smartphone or tablet; Mobile Verify, an identity verification solution that can be integrated into mobile apps, mobile Websites, and desktop applications; Mobile Fill to pre-fill forms with personal data by simply snapping a picture of the consumer's driver license, credit card, or other document; Mobile Docs, a mobile document scanning solution; and MiSnap Multi-Check Capture, a software development kit that banks embed in their business banking app that facilitates capture of various checks in one deposit session. The company markets and sells its solutions primarily to banks, credit unions, lenders, payments processers, card issuers, insurers, etc. through direct sales teams and channel partners. Mitek Systems, Inc. was founded in 1983 and is headquartered in San Diego, California.

TransAct Technologies Company Profile

TransAct Technologies Incorporated designs, develops, assembles, and markets transaction-based and specialty printers and terminals in the United States and internationally. It offers thermal, inkjet, and impact printers and terminals to generate labels and transaction records, such as receipts, tickets, coupons, register journals, and other documents, as well as printed logging and plotting of data. The company also provides consumable products, including inkjet cartridges, ribbons, receipt papers, color thermal papers, food safety labels, and other printing supplies, as well as replacement parts; maintenance, repair, and testing services; and refurbished printers. In addition, it offers EPICENTRAL print system, a software solution that enables casino operators to create promotional coupons and marketing messages, and print them at the slot machine; and technical support services, as well as spare parts and accessories. Further, the company provides AccuDate terminals for the restaurant solutions market combine hardware and software in a device that includes an operating system, touchscreen, and one or two thermal print mechanisms. The company markets its products under the AccuDate, Epic, EPICENTRAL, Ithaca, Responder, and Printrex brand names for restaurant, point of sale automation and banking, casino and gaming, lottery, mobile, oil and gas, and hospitality markets, as well as government. It sells its products to original equipment manufacturers, value-added resellers, and distributors, as well as directly and online to end-users. TransAct Technologies Incorporated was founded in 1996 and is headquartered in Hamden, Connecticut.

Receive News & Ratings for Mitek Systems Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Mitek Systems and related companies with MarketBeat.com's FREE daily email newsletter.