Transcat (NASDAQ: TRNS) and Electro Scientific Industries (NASDAQ:ESIO) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, profitability, institutional ownership and valuation.
This table compares Transcat and Electro Scientific Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Electro Scientific Industries||7.63%||14.57%||9.15%|
Valuation & Earnings
This table compares Transcat and Electro Scientific Industries’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Transcat||$143.90 million||0.76||$4.52 million||$0.68||22.43|
|Electro Scientific Industries||$161.02 million||4.45||-$37.40 million||$0.60||35.62|
Transcat has higher earnings, but lower revenue than Electro Scientific Industries. Transcat is trading at a lower price-to-earnings ratio than Electro Scientific Industries, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for Transcat and Electro Scientific Industries, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Electro Scientific Industries||0||0||4||0||3.00|
Transcat currently has a consensus price target of $20.00, indicating a potential upside of 31.15%. Electro Scientific Industries has a consensus price target of $32.50, indicating a potential upside of 52.08%. Given Electro Scientific Industries’ higher possible upside, analysts plainly believe Electro Scientific Industries is more favorable than Transcat.
Risk & Volatility
Transcat has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500. Comparatively, Electro Scientific Industries has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.
Insider and Institutional Ownership
55.2% of Transcat shares are owned by institutional investors. Comparatively, 83.9% of Electro Scientific Industries shares are owned by institutional investors. 8.8% of Transcat shares are owned by company insiders. Comparatively, 6.2% of Electro Scientific Industries shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Electro Scientific Industries beats Transcat on 10 of the 13 factors compared between the two stocks.
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.
Electro Scientific Industries Company Profile
Electro Scientific Industries, Inc., together with its subsidiaries, supplies laser-based microfabrication solutions for the microtechnology industry worldwide. It provides printed circuit boards, including laser via drilling systems for electrical interconnect applications; micro via drilling technology that addresses the changing applications in integrated circuit packages, multichip modules, and high density interconnect circuit boards; and ultraviolet laser processing systems comprising single-beam and multi-beam systems. It also offers semiconductor manufacturing products comprising wafer marking equipment for use in serialization and wafer identification; wafer and circuit trim tools that adjust the electrical performance of semiconductor devices or hybrid circuits; and liquid crystal display (LCD) repair tools; and laser LCD repair systems to enhance the manufacture of flat panel displays. In addition, the company provides component test products that combine high-speed small parts handling technology with real-time control systems to provide inspection solutions for manufacturers of multilayer ceramic capacitors and other passive components, such as capacitor arrays, inductors, resistors, varistors, and hybrid circuits. Further, it offers industrial machining products, such as platforms for precision drilling, scribing, cutting, etching, routing, and marking various materials and devices; and laser systems to manufacturers of end devices for drilling, marking, and cutting. The company sells its products through direct sales and service offices, value-added resellers, and independent representatives. Electro Scientific Industries, Inc. was founded in 1944 and is headquartered in Portland, Oregon.
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