TransAct Technologies (NASDAQ: TACT) and Avid Technology (OTCMKTS:AVID) 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, profitabiliy, dividends, analyst recommendations, earnings, institutional ownership and valuation.

Profitability

This table compares TransAct Technologies and Avid Technology’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%
Avid Technology -1.84% N/A -3.07%

Dividends

TransAct Technologies pays an annual dividend of $0.36 per share and has a dividend yield of 3.7%. Avid Technology does not pay a dividend. TransAct Technologies pays out 65.5% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and target prices for TransAct Technologies and Avid Technology, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TransAct Technologies 0 0 1 0 3.00
Avid Technology 0 1 0 0 2.00

TransAct Technologies presently has a consensus price target of $11.00, indicating a potential upside of 13.40%. Avid Technology has a consensus price target of $5.00, indicating a potential upside of 3.31%. Given TransAct Technologies’ stronger consensus rating and higher probable upside, equities research analysts plainly believe TransAct Technologies is more favorable than Avid Technology.

Insider and Institutional Ownership

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

Valuation and Earnings

This table compares TransAct Technologies and Avid Technology’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TransAct Technologies $56.88 million 1.25 $6.97 million $0.55 17.64
Avid Technology $472.49 million 0.42 $66.79 million N/A N/A

Avid Technology has higher revenue and earnings than TransAct Technologies.

Summary

TransAct Technologies beats Avid Technology on 11 of the 14 factors compared between the two stocks.

TransAct Technologies Company Profile

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.

Avid Technology Company Profile

Avid Technology, Inc. is a provider of an open and integrated technology platform, along with applications and services that enable the creation, distribution and monetization of audio and video content. The Company develops, markets, sells and supports software and hardware for digital media content production, management, secured content storage and distribution. The Company’s products are used in production and post-production facilities; film studios; network, affiliate, independent and cable television stations; recording studios; live-sound performance venues; advertising agencies; government and educational institutions; corporate communication departments, and by independent video and audio creative professionals, as well as aspiring professionals and enthusiasts. Projects produced using its products include feature films, television programs, live events, news broadcasts, commercials, music, video and other digital media content.

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