Critical Contrast: TransAct Technologies (TACT) and Fortinet (FTNT)

TransAct Technologies (NASDAQ: FTNT) and Fortinet (NASDAQ:FTNT) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Institutional and Insider Ownership

41.4% of TransAct Technologies shares are held by institutional investors. Comparatively, 71.2% of Fortinet shares are held by institutional investors. 12.5% of TransAct Technologies shares are held by insiders. Comparatively, 17.7% of Fortinet shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
TransAct Technologies 5.91% 18.19% 14.03%
Fortinet 5.43% 17.51% 5.39%

Valuation and Earnings

This table compares TransAct Technologies and Fortinet’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TransAct Technologies $56.31 million 1.83 $3.21 million $0.60 23.33
Fortinet $1.49 billion 9.98 $31.39 million $0.52 169.56

Fortinet has higher revenue and earnings than TransAct Technologies. TransAct Technologies is trading at a lower price-to-earnings ratio than Fortinet, 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 2.6%. Fortinet does not pay a dividend. TransAct Technologies pays out 60.0% of its earnings in the form of a dividend.

Volatility and Risk

TransAct Technologies has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500. Comparatively, Fortinet has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for TransAct Technologies and Fortinet, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TransAct Technologies 0 0 1 0 3.00
Fortinet 1 12 10 0 2.39

TransAct Technologies currently has a consensus price target of $17.00, suggesting a potential upside of 21.43%. Fortinet has a consensus price target of $66.95, suggesting a potential downside of 24.07%. Given TransAct Technologies’ stronger consensus rating and higher possible upside, equities research analysts clearly believe TransAct Technologies is more favorable than Fortinet.

TransAct Technologies Company Profile

TransAct Technologies Incorporated designs, develops, assembles, and markets transaction-based and specialty printers and terminals in the United States and internationally. It offers thermal, inkjet, and impact printers and terminals to generate labels and transaction records, such as receipts, tickets, coupons, register journals, and other documents, as well as printed logging and plotting of data. The company also provides consumable products, including inkjet cartridges, ribbons, receipt papers, color thermal papers, food safety labels, and other printing supplies, as well as replacement parts; maintenance, repair, and testing services; and refurbished printers. In addition, it offers EPICENTRAL print system, a software solution that enables casino operators to create promotional coupons and marketing messages, and print them at the slot machine; and technical support services, as well as spare parts and accessories. Further, the company provides AccuDate terminals for the restaurant solutions market combine hardware and software in a device that includes an operating system, touchscreen, and one or two thermal print mechanisms. The company markets its products under the AccuDate, Epic, EPICENTRAL, Ithaca, Responder, and Printrex brand names for restaurant, point of sale automation and banking, casino and gaming, lottery, mobile, oil and gas, and hospitality markets, as well as government. It sells its products to original equipment manufacturers, value-added resellers, and distributors, as well as directly and online to end-users. TransAct Technologies Incorporated was founded in 1996 and is headquartered in Hamden, Connecticut.

Fortinet Company Profile

Fortinet, Inc. provides broad, automated, and integrated cybersecurity solutions worldwide. It offers FortiGate hardware and software licenses that provide various security and networking functions, including firewall, intrusion prevention, anti-malware, virtual private network, application control, Web filtering, anti-spam, and WAN acceleration; and FortiSandbox technology that delivers proactive detection and mitigation services; and FortiSIEM family of products, which offers a cloud-ready security information and event management solution for enterprises and service providers. The company also provides FortiSwitch product family that offers secure switching solutions for connecting customers end devices, such as computers and laptops, as well as an expanding field of Internet of Things devices; and Fortinet Management and Analysis products consisting of FortiManager and FortiAnalyzer hardware and software products. In addition, it provides security subscription, technical support, professional, and training services. The company sells its security solutions to channel partners; and directly to end-customers, including small and medium-sized businesses, large enterprises, and government organizations in a range of industries consisting of telecommunications, technology, government, financial services, education, retail, manufacturing, and healthcare. Fortinet, Inc. was founded in 2000 and is headquartered in Sunnyvale, California.

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