Transcat (TRNS) and CTS (CTS) Critical Analysis
Transcat (NASDAQ: TRNS) and CTS (NYSE:CTS) 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 profitability, dividends, valuation, risk, institutional ownership, analyst recommendations and earnings.
Valuation and Earnings
This table compares Transcat and CTS’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Transcat||$143.90 million||0.78||$4.52 million||$0.68||23.09|
|CTS||$422.99 million||2.01||$14.44 million||$0.43||59.88|
Insider & Institutional Ownership
52.9% of Transcat shares are held by institutional investors. Comparatively, 93.8% of CTS shares are held by institutional investors. 8.8% of Transcat shares are held by company insiders. Comparatively, 1.8% of CTS shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This is a breakdown of current ratings and price targets for Transcat and CTS, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Transcat presently has a consensus price target of $20.00, suggesting a potential upside of 27.39%. Given Transcat’s higher probable upside, analysts plainly believe Transcat is more favorable than CTS.
CTS pays an annual dividend of $0.16 per share and has a dividend yield of 0.6%. Transcat does not pay a dividend. CTS pays out 37.2% of its earnings in the form of a dividend.
Risk and Volatility
Transcat has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500. Comparatively, CTS has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.
This table compares Transcat and CTS’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
CTS beats Transcat on 10 of the 15 factors compared between the two stocks.
Transcat Company Profile
Transcat, Inc. is a provider of calibration and laboratory instrument services and a distributor of professional grade test, measurement and control instrumentation. The Company conducts its business through two segments: service (Service) and distribution (Distribution). Through the Service segment, the Company offers calibration, repair, inspection, analytical qualifications, preventative maintenance and other related services, a majority of which are processed through its asset management system, CalTrak (CalTrak). Through its Distribution segment, the Company markets, sells and rents national brand instruments to customers around the globe. The Company is focused on providing its services and products to the life science industries, which include pharmaceutical, biotechnology, medical device manufacturing and other Food and Drug Administration (FDA)-regulated businesses.
CTS Company Profile
CTS Corporation is a manufacturer of sensors, electronic components and actuators. The Company designs, manufactures and sells a line of sensors, electronic components and actuators primarily to original equipment manufacturers (OEMs) for the transportation, industrial, medical, information technology, defense and aerospace, and communications markets. It operates manufacturing facilities in North America, Asia and Europe. Its products perform specific electronic functions for a given product family and are intended for use in customer assemblies. The Company’s products consist principally of sensors and actuators used in passenger or commercial vehicles; electronic components used in communications infrastructure, information technology and other high-speed applications; switches and potentiometers supplied to multiple markets, and fabricated piezoelectric materials and substrates used primarily in medical, industrial, defense and aerospace, and information technology markets.
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