Head-To-Head Contrast: Crossroads Systems (CRDSQ) vs. TransAct Technologies (NASDAQ:TACT)

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

Dividends

TransAct Technologies pays an annual dividend of $0.36 per share and has a dividend yield of 2.4%. Crossroads Systems does not pay a dividend. TransAct Technologies pays out 54.5% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares TransAct Technologies and Crossroads Systems’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TransAct Technologies $57.24 million 1.89 $3.61 million $0.66 22.27
Crossroads Systems N/A N/A N/A ($1.08) -2.50

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

Profitability

This table compares TransAct Technologies and Crossroads Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TransAct Technologies 8.78% 19.99% 15.67%
Crossroads Systems -518.75% -22.99% -7.88%

Insider & Institutional Ownership

38.3% of TransAct Technologies shares are owned by institutional investors. Comparatively, 7.5% of Crossroads Systems shares are owned by institutional investors. 13.2% of TransAct Technologies shares are owned by company insiders. Comparatively, 27.4% of Crossroads Systems shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

TransAct Technologies has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, Crossroads Systems has a beta of 2.74, indicating that its share price is 174% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for TransAct Technologies and Crossroads Systems, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TransAct Technologies 0 0 1 0 3.00
Crossroads Systems 0 0 0 0 N/A

TransAct Technologies currently has a consensus target price of $11.00, indicating a potential downside of 25.17%. Given TransAct Technologies’ higher possible upside, equities research analysts clearly believe TransAct Technologies is more favorable than Crossroads Systems.

Summary

TransAct Technologies beats Crossroads Systems on 10 of the 13 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.

Crossroads Systems Company Profile

Crossroads Systems, Inc. is an intellectual property licensing company. The Company’s intellectual property assets are identified in two distinct categories: the first category is known as the 972 patent family and the second category is known as the non-972 patents. As of October 31, 2016, the 972 patent family consisted of 31 patents and pending patents that are primarily concentrated around access controls. As of October 31, 2016, the non-972 patents consisted of 140 patents and pending patents that are primarily directed to five product families: optimizing command processing, enabling interoperability, managing networks, enhancing tape libraries and improving data systems. As of October 31, 2016, approximately 50 companies have licensed 972 patents from the Company. The Company’s subsidiaries include Crossroads Systems (Texas), Inc. and Crossroads Europe GmbH.

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