Head to Head Analysis: Transcat (TRNS) vs. Its Rivals

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

Analyst Ratings

This is a summary of current recommendations for Transcat and its peers, as reported 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 presently has a consensus target price of $20.00, indicating a potential upside of 27.80%. As a group, “Electronic Component” companies have a potential upside of 2.34%. Given Transcat’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Transcat is more favorable than its peers.

Earnings and Valuation

This table compares Transcat and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Transcat $143.90 million $4.52 million 23.01
Transcat Competitors $1.21 billion $129.73 million 99.71

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

Risk and Volatility

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

Profitability

This table compares Transcat and its peers’ 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%

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

Summary

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

About Transcat

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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