Head to Head Comparison: NVE (NVEC) vs. Transcat (TRNS)
NVE (NASDAQ: NVEC) and Transcat (NASDAQ:TRNS) are both small-cap industrials companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.
Insider and Institutional Ownership
75.0% of NVE shares are owned by institutional investors. Comparatively, 57.1% of Transcat shares are owned by institutional investors. 2.3% of NVE shares are owned by insiders. Comparatively, 8.8% of Transcat shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares NVE and Transcat’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|NVE||$28.33 million||12.64||$12.94 million||$2.70||27.40|
|Transcat||$143.90 million||0.78||$4.52 million||$0.68||23.06|
NVE has higher earnings, but lower revenue than Transcat. Transcat is trading at a lower price-to-earnings ratio than NVE, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
NVE has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, Transcat has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500.
NVE pays an annual dividend of $4.00 per share and has a dividend yield of 5.4%. Transcat does not pay a dividend. NVE pays out 148.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a breakdown of current ratings for NVE and Transcat, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
NVE currently has a consensus target price of $79.00, indicating a potential upside of 6.77%. Transcat has a consensus target price of $20.00, indicating a potential upside of 27.55%. Given Transcat’s stronger consensus rating and higher possible upside, analysts clearly believe Transcat is more favorable than NVE.
This table compares NVE and Transcat’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
NVE beats Transcat on 10 of the 16 factors compared between the two stocks.
NVE Company Profile
NVE Corporation develops and sells devices that use spintronics, a nanotechnology that relies on electron spin to acquire, store and transmit information. The Company manufactures spintronic products, including sensors and couplers that are used to acquire and transmit data. The Company has also licensed its spintronic magnetoresistive random access memory technology (MRAM). Its parts are found in industrial, scientific, and medical applications. The Company’s products include sensors, couplers and MRAM products. Its sensor products detect the strength or gradient of magnetic fields and are used to determine position or speed. Its spintronic couplers combine a GMR sensor element and an IsoLoop integrated microscopic coil. MRAM uses spintronics to store data. It combines the speed of static random-access memory (SRAM), the density of dynamic random-access memory (DRAM) and the nonvolatility of flash memory. Data is stored in the spin of the electrons in thin metal alloy films.
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.
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