Critical Review: Transcat (TRNS) and The Competition

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

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Transcat $143.90 million $4.52 million 22.65
Transcat Competitors $1.24 billion $133.94 million 77.82

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.

Risk & Volatility

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

Insider & Institutional Ownership

52.9% of Transcat shares are held by institutional investors. Comparatively, 56.7% of shares of all “Electronic Component” companies are held by institutional investors. 8.8% of Transcat shares are held by company insiders. Comparatively, 9.0% of shares of all “Electronic Component” companies 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.

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 -3.25% -0.42% 1.94%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Transcat and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Transcat 0 0 3 0 3.00
Transcat Competitors 41 265 526 13 2.60

Transcat currently has a consensus price target of $20.00, indicating a potential upside of 29.87%. As a group, “Electronic Component” companies have a potential upside of 1.13%. Given Transcat’s stronger consensus rating and higher possible 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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