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

Profitability

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

Net Margins Return on Equity Return on Assets
TransAct Technologies 7.27% 16.68% 12.81%
Qumu Corporation -29.95% -53.09% -23.13%

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TransAct Technologies $55.67 million 1.32 $7.14 million $0.55 18.18
Qumu Corporation $29.80 million 0.93 -$5.91 million ($0.98) -3.00

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

Insider and Institutional Ownership

37.2% of TransAct Technologies shares are owned by institutional investors. Comparatively, 24.8% of Qumu Corporation shares are owned by institutional investors. 11.6% of TransAct Technologies shares are owned by company insiders. Comparatively, 11.2% of Qumu Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

TransAct Technologies has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Qumu Corporation has a beta of -0.43, suggesting that its stock price is 143% less volatile than the S&P 500.

Dividends

TransAct Technologies pays an annual dividend of $0.36 per share and has a dividend yield of 3.6%. Qumu Corporation does not pay a dividend. TransAct Technologies pays out 65.5% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for TransAct Technologies and Qumu Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TransAct Technologies 0 0 1 0 3.00
Qumu Corporation 0 0 0 0 N/A

TransAct Technologies presently has a consensus target price of $11.00, suggesting a potential upside of 10.00%. Given TransAct Technologies’ higher possible upside, research analysts plainly believe TransAct Technologies is more favorable than Qumu Corporation.

Summary

TransAct Technologies beats Qumu Corporation on 13 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.

Qumu Corporation Company Profile

Qumu Corporation (Qumu) is an enterprise video content management software company. The Company is engaged in providing tools businesses need to create, manage, secure, deliver and measure their videos. The Company operates through the enterprise video content management software business segment. Its video content management software solutions allow organizations to create, capture, organize and deliver content across the extended enterprise to a range of end points, including mobile devices and thick or thin clients. Qumu’s video platform supports both live and on-demand streaming. The Qumu platform is a video content management software solution that can be deployed as a perpetual software license, a term software license or a cloud-hosted software as a service (SaaS). Qumu Capture Studio is a portable software-enabled device that records, edits and publishes video and presentation content.

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