TransAct Technologies (NASDAQ:TACT – Get Free Report) and CPI Card Group (NASDAQ:PMTS – Get Free Report) are both small-cap technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.
Insider and Institutional Ownership
74.5% of TransAct Technologies shares are held by institutional investors. Comparatively, 22.1% of CPI Card Group shares are held by institutional investors. 19.2% of TransAct Technologies shares are held by company insiders. Comparatively, 5.8% of CPI Card Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares TransAct Technologies and CPI Card Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TransAct Technologies | $51.48 million | 1.04 | -$1.24 million | ($0.04) | -129.75 |
| CPI Card Group | $543.53 million | 0.52 | $14.95 million | $1.15 | 21.03 |
CPI Card Group has higher revenue and earnings than TransAct Technologies. TransAct Technologies is trading at a lower price-to-earnings ratio than CPI Card Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations for TransAct Technologies and CPI Card Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TransAct Technologies | 1 | 1 | 0 | 0 | 1.50 |
| CPI Card Group | 0 | 2 | 4 | 0 | 2.67 |
CPI Card Group has a consensus target price of $30.25, suggesting a potential upside of 25.10%. Given CPI Card Group’s stronger consensus rating and higher probable upside, analysts plainly believe CPI Card Group is more favorable than TransAct Technologies.
Profitability
This table compares TransAct Technologies and CPI Card Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TransAct Technologies | -0.75% | -1.25% | -0.85% |
| CPI Card Group | 2.34% | -145.74% | 6.29% |
Risk and Volatility
TransAct Technologies has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500. Comparatively, CPI Card Group has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500.
Summary
CPI Card Group beats TransAct Technologies on 9 of the 14 factors compared between the two stocks.
About TransAct Technologies
TransAct Technologies Incorporated designs, develops, and markets transaction-based and specialty printers and terminals in the United States and internationally. It offers thermal printers and terminals to generate labels, coupons, and transaction records, such as receipts, tickets, and other documents. The company also provides consumable products, including POS receipt paper, inkjet cartridges, ribbons, and other printing supplies, as well as replacement parts and accessories; and maintenance and repair services. In addition, it offers EPICENTRAL print system, a software solution that enables casino operators to create promotional coupons and marketing messages, and print them at the slot machine; and technical support services, as well as spare parts and accessories. Further, the company provides BOHA! terminal that combines hardware and software components in a device that includes an operating system, touchscreen, and one or two thermal print mechanisms. It markets its products under the TransAct, BOHA!, AccuDate, Ithaca, and EPICENTRAL brands for food service technology, point of sale automation, and casino and gaming markets. The company sells its products to original equipment manufacturers, value-added resellers, and distributors, as well as directly to end-users through its Webstore transactsupplies.com. TransAct Technologies Incorporated was incorporated in 1996 and is headquartered in Hamden, Connecticut.
About CPI Card Group
CPI Card Group Inc., together with its subsidiaries, engages in the design, production, data personalization, packaging, and fulfillment of financial payment cards. It operates through Debit and Credit, and Prepaid Debit segments. The Debit and Credit segment produces financial payment cards and provides integrated card services to card-issuing financial institutions. Its products include Europay, Mastercard, and Visa (EMV) and non-EMV financial payment cards, including contact and contactless cards, plastic and encased metal cards, and Second Wave payment cards, as well as private label credit cards. This segment also provides on-demand services and various integrated card services, including card personalization and fulfillment, as well as instant issuance services. The Prepaid Debit segment primarily offers integrated card services comprising tamper-evident security packaging services to prepaid debit card providers. It also produces financial payment cards issued on the networks of the payment card brands. It serves issuers of debit and credit cards, Prepaid Debit Card program managers, community banks, credit unions, and group service providers in the United States. The company was formerly known as CPI Holdings I, Inc. and changed its name to CPI Card Group Inc. in August 2015. CPI Card Group Inc. was incorporated in 2007 and is headquartered in Littleton, Colorado.
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