Financial Contrast: Transcat (TRNS) vs. The Competition

Transcat (NASDAQ: TRNS) is one of 24 publicly-traded companies in the “Electronic Component” industry, but how does it weigh in compared to its competitors? We will compare Transcat to similar companies based on the strength of its profitability, valuation, institutional ownership, risk, dividends, analyst recommendations and earnings.

Risk & Volatility

Transcat has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500. Comparatively, Transcat’s competitors have a beta of 1.01, indicating that their average share price is 1% more volatile than the S&P 500.

Profitability

This table compares Transcat and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Transcat 3.24% 10.03% 4.94%
Transcat Competitors -2.80% -0.15% 2.00%

Insider & Institutional Ownership

52.9% of Transcat shares are owned by institutional investors. Comparatively, 56.7% of shares of all “Electronic Component” companies are owned by institutional investors. 8.8% of Transcat shares are owned by company insiders. Comparatively, 9.0% of shares of all “Electronic Component” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Transcat and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Transcat $143.90 million $4.52 million 23.01
Transcat Competitors $1.24 billion $133.94 million 91.29

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Transcat and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Transcat 0 0 3 0 3.00
Transcat Competitors 41 264 524 12 2.60

Transcat presently has a consensus target price of $20.00, suggesting a potential upside of 27.80%. As a group, “Electronic Component” companies have a potential downside of 0.62%. Given Transcat’s stronger consensus rating and higher probable upside, equities analysts plainly believe Transcat is more favorable than its competitors.

Summary

Transcat competitors beat Transcat on 7 of the 13 factors compared.

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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