TransAct Technologies (NASDAQ: TACT) and Materialise NV (NASDAQ:MTLS) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitabiliy, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Earnings & Valuation

This table compares TransAct Technologies and Materialise NV’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TransAct Technologies $56.88 million 1.19 $6.97 million $0.55 16.73
Materialise NV $139.23 million 4.63 $9.97 million ($0.02) -680.50

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

Profitability

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

Net Margins Return on Equity Return on Assets
TransAct Technologies 7.27% 16.84% 12.79%
Materialise NV -0.59% -0.88% -0.44%

Dividends

TransAct Technologies pays an annual dividend of $0.36 per share and has a dividend yield of 3.9%. Materialise NV does not pay a dividend. TransAct Technologies pays out 65.5% of its earnings in the form of a dividend.

Risk & Volatility

TransAct Technologies has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, Materialise NV has a beta of 1.79, meaning that its share price is 79% more volatile than the S&P 500.

Institutional & Insider Ownership

38.0% of TransAct Technologies shares are held by institutional investors. Comparatively, 8.1% of Materialise NV shares are held by institutional investors. 11.6% of TransAct Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TransAct Technologies 0 0 1 0 3.00
Materialise NV 0 0 4 0 3.00

TransAct Technologies currently has a consensus target price of $11.00, indicating a potential upside of 19.57%. Materialise NV has a consensus target price of $12.63, indicating a potential downside of 7.24%. Given TransAct Technologies’ higher possible upside, equities research analysts plainly believe TransAct Technologies is more favorable than Materialise NV.

Summary

TransAct Technologies beats Materialise NV on 8 of the 14 factors compared between the two stocks.

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.

About Materialise NV

Materialise NV is a Belgium-based company engaged in the software industry. The Company is a provider of additive manufacturing software and of three dimensional (3D) printing services. Materialise NV incorporates of 3D printing experience into a range of software solution and 3D printing services, through which the Company seeks to form the backbone of the 3D printing industry. Its solutions enable players in a wide variety of industries, including healthcare, automotive, aerospace, art and design, and consumer goods, to build 3D printing applications. The Company operates in the domestic market and worldwide, including Colombia, Brazil, Australia, Malaysia, China, Japan, Austria, Poland, Germany and France, among others.

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