ForeScout Technologies (FSCT) & TransAct Technologies (TACT) Financial Survey

ForeScout Technologies (NASDAQ: FSCT) and TransAct Technologies (NASDAQ:TACT) are both small-cap industrial products companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.

Earnings & Valuation

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This table compares ForeScout Technologies and TransAct Technologies’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ForeScout Technologies $220.87 million 6.43 -$91.20 million ($7.93) -4.56
TransAct Technologies $56.31 million 1.68 $3.21 million $0.60 21.25

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

Dividends

TransAct Technologies pays an annual dividend of $0.36 per share and has a dividend yield of 2.8%. ForeScout Technologies does not pay a dividend. TransAct Technologies pays out 60.0% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
ForeScout Technologies N/A N/A N/A
TransAct Technologies 5.70% 17.83% 14.03%

Institutional and Insider Ownership

35.3% of ForeScout Technologies shares are held by institutional investors. Comparatively, 38.5% of TransAct Technologies shares are held by institutional investors. 11.6% of TransAct Technologies shares are held 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.

Analyst Recommendations

This is a summary of recent recommendations and price targets for ForeScout Technologies and TransAct Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ForeScout Technologies 0 2 6 0 2.75
TransAct Technologies 0 0 1 0 3.00

ForeScout Technologies presently has a consensus price target of $32.57, indicating a potential downside of 9.85%. TransAct Technologies has a consensus price target of $17.00, indicating a potential upside of 33.33%. Given TransAct Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe TransAct Technologies is more favorable than ForeScout Technologies.

Summary

TransAct Technologies beats ForeScout Technologies on 11 of the 15 factors compared between the two stocks.

About ForeScout Technologies

ForeScout Technologies, Inc. provides network security products in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. It offers ForeScout CounterACT agentless technology that discovers, classifies, and assesses IP-based devices; ForeScout extended modules, which represent integrations across vulnerability assessment, advanced threat detection, security incidence and event management, enterprise mobility management, endpoint protection and endpoint detection and response, next generation firewall, privileged access management, and IT systems management vendors, as well as compliance; and ForeScout CounterACT Enterprise Manager, a centralized security management solution for the control of various appliances deployed on an end-customer network, as well as maintenance and professional services. The company's products are used to protect organizations against the threats that exploit the billions of Internet of things devices connected to organizations' networks. ForeScout Technologies, Inc. sells its products and services through distributors and resellers. The company was founded in 2000 and is headquartered in San Jose, California.

About TransAct Technologies

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.

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