TransAct Technologies (NASDAQ: TACT) and Materialise NV (NASDAQ:MTLS) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.

Profitability

This table compares TransAct Technologies and Materialise NV’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TransAct Technologies 7.27% 16.68% 12.81%
Materialise NV -0.99% -1.59% -0.76%

Dividends

TransAct Technologies pays an annual dividend of $0.36 per share and has a dividend yield of 3.7%. Materialise NV does not pay a dividend. TransAct Technologies pays out 65.5% of its earnings in the form of a dividend.

Risk & Volatility

TransAct Technologies has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, Materialise NV has a beta of 1.8, suggesting that its share price is 80% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for TransAct Technologies and Materialise NV, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TransAct Technologies 0 0 1 0 3.00
Materialise NV 0 0 4 0 3.00

TransAct Technologies presently has a consensus target price of $11.00, suggesting a potential upside of 12.24%. Materialise NV has a consensus target price of $13.13, suggesting a potential downside of 2.78%. Given TransAct Technologies’ higher possible upside, research analysts clearly believe TransAct Technologies is more favorable than Materialise NV.

Institutional & Insider Ownership

38.2% of TransAct Technologies shares are owned by institutional investors. Comparatively, 10.9% of Materialise NV shares are owned by institutional investors. 11.6% of TransAct Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares TransAct Technologies and Materialise NV’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TransAct Technologies $55.67 million 1.30 $7.14 million $0.55 17.82
Materialise NV $147.29 million 4.34 $11.77 million ($0.03) -450.00

Materialise NV has higher revenue and earnings than TransAct Technologies. Materialise NV is trading at a lower price-to-earnings ratio than TransAct Technologies, indicating that it is currently the more affordable of the two stocks.

Summary

TransAct Technologies beats Materialise NV on 8 of the 14 factors compared between the two stocks.

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.

Materialise NV Company Profile

Materialise NV is a Belgium-based company engaged in the software industry. The Company is a provider of additive manufacturing software and of three dimensional (3D) printing services. Materialise NV incorporates of 3D printing experience into a range of software solution and 3D printing services, through which the Company seeks to form the backbone of the 3D printing industry. Its solutions enable players in a wide variety of industries, including healthcare, automotive, aerospace, art and design, and consumer goods, to build 3D printing applications. The Company operates in the domestic market and worldwide, including Colombia, Brazil, Australia, Malaysia, China, Japan, Austria, Poland, Germany and France, among others.

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