Contrasting TransAct Technologies (TACT) & The Competition

TransAct Technologies (NASDAQ:TACT) is one of 83 public companies in the “Technology Hardware, Storage & Peripherals” industry, but how does it contrast to its competitors? We will compare TransAct Technologies to similar businesses based on the strength of its valuation, institutional ownership, analyst recommendations, dividends, risk, earnings and profitability.

Analyst Ratings

This is a summary of current ratings and recommmendations for TransAct Technologies and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TransAct Technologies	1	1	0	0	1.50
TransAct Technologies Competitors	1124	4404	7825	381	2.54

As a group, “Technology Hardware, Storage & Peripherals” companies have a potential upside of 70.33%. Given TransAct Technologies’ competitors stronger consensus rating and higher possible upside, analysts plainly believe TransAct Technologies has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

74.5% of TransAct Technologies shares are held by institutional investors. Comparatively, 51.6% of shares of all “Technology Hardware, Storage & Peripherals” companies are held by institutional investors. 19.2% of TransAct Technologies shares are held by company insiders. Comparatively, 11.0% of shares of all “Technology Hardware, Storage & Peripherals” companies are held 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.

Risk & Volatility

TransAct Technologies has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500. Comparatively, TransAct Technologies’ competitors have a beta of 1.74, indicating that their average share price is 74% more volatile than the S&P 500.

Valuation and Earnings

This table compares TransAct Technologies and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
TransAct Technologies	$52.99 million	-$1.24 million	-125.35
TransAct Technologies Competitors	$24.67 billion	$4.07 billion	4.03

TransAct Technologies’ competitors have higher revenue and earnings than TransAct Technologies. TransAct Technologies is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares TransAct Technologies and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TransAct Technologies	-0.75%	-1.25%	-0.85%
TransAct Technologies Competitors	-92.27%	-29.85%	7.82%

Dividends

TransAct Technologies pays an annual dividend of $0.36 per share and has a dividend yield of 7.2%. TransAct Technologies pays out -900.0% of its earnings in the form of a dividend. As a group, “Technology Hardware, Storage & Peripherals” companies pay a dividend yield of 4.2% and pay out 39.9% of their earnings in the form of a dividend. TransAct Technologies is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Summary

TransAct Technologies competitors beat TransAct Technologies on 9 of the 15 factors compared.

TransAct Technologies Company Profile

TransAct Technologies Incorporated (NASDAQ:TACT) develops and manufactures transaction-based technology products for the gaming, lottery, food service and point-of-sale markets. The company’s offerings include thermal printers, kiosks, terminals and related hardware used to produce tickets, receipts, vouchers and other transaction documents. In the gaming and lottery industries, TransAct supplies printers and other equipment for slot machines, video lottery terminals, ticket-in/ticket-out systems and lottery applications.