Crossroads Systems (CRDSQ) & TransAct Technologies (TACT) Financial Analysis
Crossroads Systems (OTCMKTS: CRDSQ) and TransAct Technologies (NASDAQ:TACT) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.
Institutional & Insider Ownership
7.5% of Crossroads Systems shares are owned by institutional investors. Comparatively, 38.3% of TransAct Technologies shares are owned by institutional investors. 27.4% of Crossroads Systems shares are owned by insiders. Comparatively, 13.2% 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.
Risk & Volatility
Crossroads Systems has a beta of 2.74, meaning that its share price is 174% more volatile than the S&P 500. Comparatively, TransAct Technologies has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.
This table compares Crossroads Systems and TransAct Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Crossroads Systems and TransAct Technologies’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|TransAct Technologies||$57.24 million||1.93||$3.61 million||$0.67||22.39|
TransAct Technologies has higher revenue and earnings than Crossroads Systems. Crossroads Systems 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 pays an annual dividend of $0.36 per share and has a dividend yield of 2.4%. Crossroads Systems does not pay a dividend. TransAct Technologies pays out 53.7% of its earnings in the form of a dividend.
This is a breakdown of recent ratings for Crossroads Systems and TransAct Technologies, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
TransAct Technologies has a consensus price target of $11.00, indicating a potential downside of 26.67%. Given TransAct Technologies’ higher possible upside, analysts clearly believe TransAct Technologies is more favorable than Crossroads Systems.
TransAct Technologies beats Crossroads Systems on 9 of the 12 factors compared between the two stocks.
Crossroads Systems Company Profile
Crossroads Systems, Inc. is an intellectual property licensing company. The Company’s intellectual property assets are identified in two distinct categories: the first category is known as the 972 patent family and the second category is known as the non-972 patents. As of October 31, 2016, the 972 patent family consisted of 31 patents and pending patents that are primarily concentrated around access controls. As of October 31, 2016, the non-972 patents consisted of 140 patents and pending patents that are primarily directed to five product families: optimizing command processing, enabling interoperability, managing networks, enhancing tape libraries and improving data systems. As of October 31, 2016, approximately 50 companies have licensed 972 patents from the Company. The Company’s subsidiaries include Crossroads Systems (Texas), Inc. and Crossroads Europe GmbH.
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.
Receive News & Ratings for Crossroads Systems Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Crossroads Systems Inc. and related companies with Analyst Ratings Network's FREE daily email newsletter.