Contrasting Transcat (TRNS) and Its Rivals

Transcat (NASDAQ: TRNS) is one of 24 publicly-traded companies in the “Electronic Component” industry, but how does it contrast to its rivals? We will compare Transcat to related businesses based on the strength of its risk, dividends, earnings, valuation, institutional ownership, analyst recommendations and profitability.

Risk and Volatility

Transcat has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500. Comparatively, Transcat’s rivals have a beta of 1.01, meaning that their average stock price is 1% more volatile than the S&P 500.

Valuation and Earnings

This table compares Transcat and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Transcat $143.90 million $4.52 million 23.13
Transcat Competitors $1.21 billion $129.73 million 105.31

Transcat’s rivals have higher revenue and earnings than Transcat. Transcat is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Transcat and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Transcat 3.24% 10.03% 4.94%
Transcat Competitors -2.83% -0.23% 1.93%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Transcat and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Transcat 0 0 3 0 3.00
Transcat Competitors 40 260 518 12 2.60

Transcat currently has a consensus target price of $20.00, indicating a potential upside of 27.15%. As a group, “Electronic Component” companies have a potential upside of 0.78%. Given Transcat’s stronger consensus rating and higher probable upside, research analysts clearly believe Transcat is more favorable than its rivals.

Insider and Institutional Ownership

57.1% of Transcat shares are held by institutional investors. Comparatively, 56.4% of shares of all “Electronic Component” companies are held by institutional investors. 8.8% of Transcat shares are held by company insiders. Comparatively, 9.0% of shares of all “Electronic Component” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Transcat beats its rivals on 7 of the 13 factors compared.

Transcat Company Profile

Transcat, Inc. is a provider of calibration and laboratory instrument services and a distributor of professional grade test, measurement and control instrumentation. The Company conducts its business through two segments: service (Service) and distribution (Distribution). Through the Service segment, the Company offers calibration, repair, inspection, analytical qualifications, preventative maintenance and other related services, a majority of which are processed through its asset management system, CalTrak (CalTrak). Through its Distribution segment, the Company markets, sells and rents national brand instruments to customers around the globe. The Company is focused on providing its services and products to the life science industries, which include pharmaceutical, biotechnology, medical device manufacturing and other Food and Drug Administration (FDA)-regulated businesses.

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