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

Institutional and Insider Ownership

37.2% of TransAct Technologies shares are held by institutional investors. Comparatively, 0.6% of Nano Dimension shares are held by institutional investors. 11.6% of TransAct Technologies shares are held 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.

Dividends

TransAct Technologies pays an annual dividend of $0.36 per share and has a dividend yield of 3.8%. Nano Dimension does not pay a dividend. TransAct Technologies pays out 65.5% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares TransAct Technologies and Nano Dimension’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 1.26 $7.14 million $0.55 17.36
Nano Dimension $314,892.00 168.22 -$14.19 million ($1.58) -3.16

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

Risk and Volatility

TransAct Technologies has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, Nano Dimension has a beta of 1.58, suggesting that its share price is 58% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for TransAct Technologies and Nano Dimension, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TransAct Technologies 0 0 1 0 3.00
Nano Dimension 0 0 2 0 3.00

TransAct Technologies presently has a consensus target price of $11.00, suggesting a potential upside of 15.18%. Nano Dimension has a consensus target price of $12.50, suggesting a potential upside of 150.00%. Given Nano Dimension’s higher possible upside, analysts plainly believe Nano Dimension is more favorable than TransAct Technologies.

Profitability

This table compares TransAct Technologies and Nano Dimension’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%
Nano Dimension N/A -72.47% -62.63%

Summary

TransAct Technologies beats Nano Dimension on 9 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.

Nano Dimension Company Profile

Nano Dimension Ltd is an Israel-based holding company active in the high technology sector. The Company has a full holding in Nano Dimension Technologies, a company that develops three dimensional (3D) printers for Printed Circuit Boards (PCBs), that is electronic circuits, and nano-technology inks. The inks are conductive nano-silver particle inks and insulating nano-polymer inks. Nano Dimension Technologies’ PCB Jet printer system is an inkjet deposition tool for printing multi-layer circuit boards at home or office. Nano Dimension Technologies uses hardware, software, print-head management and nano-chemistry for Research and Development (R&D), prototyping and custom manufacturing projects.

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