Trans-Lux (OTCMKTS:TNLX) and Summer Infant (NASDAQ:SUMR) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, dividends, risk, institutional ownership and valuation.

Risk and Volatility

Trans-Lux has a beta of -0.17, indicating that its share price is 117% less volatile than the S&P 500. Comparatively, Summer Infant has a beta of 0.18, indicating that its share price is 82% less volatile than the S&P 500.

Profitability

This table compares Trans-Lux and Summer Infant’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Trans-Lux -23.55% N/A -32.69%
Summer Infant -2.22% -0.69% -0.09%

Insider and Institutional Ownership

46.6% of Summer Infant shares are owned by institutional investors. 37.8% of Trans-Lux shares are owned by insiders. Comparatively, 3.0% of Summer Infant shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations for Trans-Lux and Summer Infant, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trans-Lux 0 0 0 0 N/A
Summer Infant 0 0 1 0 3.00

Valuation and Earnings

This table compares Trans-Lux and Summer Infant’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Trans-Lux $24.44 million 0.07 -$2.84 million N/A N/A
Summer Infant $189.87 million 0.10 -$2.24 million $0.07 14.43

Summer Infant has higher revenue and earnings than Trans-Lux.

Summary

Summer Infant beats Trans-Lux on 8 of the 10 factors compared between the two stocks.

Trans-Lux Company Profile

Trans-Lux Corporation designs, manufactures, and supplies digital signage display solutions, fixed digit scoreboards, and LED lighting fixtures and lamps. The company operates in two segments, Digital Product Sales, and Digital Product Lease and Maintenance. The Digital Product Sales segment sells indoor and outdoor digital product signage and LED lighting solutions. The Digital Product Lease and Maintenance segment is involved in the lease and maintenance of indoor and outdoor digital product signage. The company offers LED display systems for use by sports arenas and stadiums; financial institutions, including brokerage firms, banks, energy companies, insurance companies, and mutual fund companies; educational institutions; outdoor advertising companies; corporate and government communication centers; retail outlets; casinos, racetracks, and other gaming establishments; airports, train stations, bus terminals, and other transportation facilities; movie theatres; and health maintenance organizations, as well as in various other applications. It also provides LED lighting solutions; and turnkey installation and support services. The company markets its products through direct sales representatives and a network of independent dealers and distributors in the United States and Canada; and internal sales people and independent distributors in Europe, the Middle East, South America, Africa, the Far East, and Australia. Trans-Lux Corporation was founded in 1920 and is headquartered in New York, New York.

Summer Infant Company Profile

Summer Infant, Inc., together with its subsidiaries, designs, markets, and distributes branded juvenile health, safety, and wellness products primarily in North America. The company markets approximately 1,100 products in various product categories, such as monitoring, safety, nursery, baby gear, and feeding products under the Summer Infant, SwaddleMe, and Born Free brand names. It offers audio and video monitors; safety products, including gates, bedrails, baby proofing, potties, bath products, positioners, and infant health products; nursery products, such as wearable blankets, sleep aides and soothers, travel accessories, and swaddles; baby gear products consisting of strollers, bassinets, high chairs, and playards; and feeding products comprising bottles, drinking cups, bibs and placemats, electronics, and pacifiers. The company sells its products to large and national retailers, independent retailers, and international retail customers through a network of independent manufacturers' representatives and distributors, as well as through its partner's Websites and its summerinfant.com Website. Summer Infant, Inc. was founded in 1985 and is headquartered in Woonsocket, Rhode Island.

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