Reviewing TransAct Technologies (TACT) & Its Competitors

TransAct Technologies (NASDAQ:TACT) is one of 82 public companies in the “Technology Hardware, Storage & Peripherals” industry, but how does it contrast to its peers? We will compare TransAct Technologies to related companies based on the strength of its dividends, analyst recommendations, risk, valuation, profitability, earnings and institutional ownership.

Volatility and Risk

TransAct Technologies has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, TransAct Technologies’ peers have a beta of 1.75, suggesting that their average share price is 75% more volatile than the S&P 500.

Insider and Institutional Ownership

74.5% of TransAct Technologies shares are owned by institutional investors. Comparatively, 51.5% of shares of all “Technology Hardware, Storage & Peripherals” companies are owned by institutional investors. 19.2% of TransAct Technologies shares are owned by company insiders. Comparatively, 10.9% of shares of all “Technology Hardware, Storage & Peripherals” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares TransAct Technologies and its peers’ 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	-113.06%	-31.03%	7.34%

Analyst Ratings

This is a breakdown of recent recommendations for TransAct Technologies and its peers, 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	1112	4393	7808	379	2.54

As a group, “Technology Hardware, Storage & Peripherals” companies have a potential upside of 78.33%. Given TransAct Technologies’ peers stronger consensus rating and higher probable upside, analysts clearly believe TransAct Technologies has less favorable growth aspects than its peers.

Valuation and Earnings

This table compares TransAct Technologies and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
TransAct Technologies	$51.48 million	-$1.24 million	-120.83
TransAct Technologies Competitors	$26.34 billion	$3.72 billion	4.20

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

Summary

TransAct Technologies peers beat TransAct Technologies on 9 of the 13 factors compared.

TransAct Technologies Company Profile

TransAct Technologies Incorporated designs, develops, and markets transaction-based and specialty printers and terminals in the United States and internationally. It offers thermal printers and terminals to generate labels, coupons, and transaction records, such as receipts, tickets, and other documents. The company also provides consumable products, including POS receipt paper, inkjet cartridges, ribbons, and other printing supplies, as well as replacement parts and accessories; and maintenance and repair services. 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 BOHA! terminal that combines hardware and software components in a device that includes an operating system, touchscreen, and one or two thermal print mechanisms. It markets its products under the TransAct, BOHA!, AccuDate, Ithaca, and EPICENTRAL brands for food service technology, point of sale automation, and casino and gaming markets. The company sells its products to original equipment manufacturers, value-added resellers, and distributors, as well as directly to end-users through its Webstore transactsupplies.com. TransAct Technologies Incorporated was incorporated in 1996 and is headquartered in Hamden, Connecticut.