CTS (NYSE: CTS) and Transcat (NASDAQ:TRNS) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.
This table compares CTS and Transcat’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Volatility & Risk
CTS has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500. Comparatively, Transcat has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500.
CTS pays an annual dividend of $0.16 per share and has a dividend yield of 0.6%. Transcat does not pay a dividend. CTS pays out 37.2% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares CTS and Transcat’s top-line revenue, earnings per share and valuation.
||Earnings Per Share
CTS has higher revenue and earnings than Transcat. Transcat is trading at a lower price-to-earnings ratio than CTS, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
95.9% of CTS shares are held by institutional investors. Comparatively, 55.2% of Transcat shares are held by institutional investors. 1.8% of CTS shares are held by company insiders. Comparatively, 8.8% of Transcat shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of current recommendations for CTS and Transcat, as reported by MarketBeat.
||Strong Buy Ratings
Transcat has a consensus price target of $20.00, suggesting a potential upside of 27.80%. Given Transcat’s higher probable upside, analysts plainly believe Transcat is more favorable than CTS.
CTS beats Transcat on 10 of the 15 factors compared between the two stocks.
CTS Corporation is a manufacturer of sensors, electronic components and actuators. The Company designs, manufactures and sells a line of sensors, electronic components and actuators primarily to original equipment manufacturers (OEMs) for the transportation, industrial, medical, information technology, defense and aerospace, and communications markets. It operates manufacturing facilities in North America, Asia and Europe. Its products perform specific electronic functions for a given product family and are intended for use in customer assemblies. The Company’s products consist principally of sensors and actuators used in passenger or commercial vehicles; electronic components used in communications infrastructure, information technology and other high-speed applications; switches and potentiometers supplied to multiple markets, and fabricated piezoelectric materials and substrates used primarily in medical, industrial, defense and aerospace, and information technology markets.
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.
Receive News & Ratings for CTS Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for CTS and related companies with MarketBeat.com's FREE daily email newsletter.