Head to Head Analysis: Transcat (NASDAQ:TRNS) and Sensata Technologies (NYSE:ST)

Sensata Technologies (NYSE:ST) and Transcat (NASDAQ:TRNS) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Sensata Technologies and Transcat, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sensata Technologies	1	6	5	0	2.33
Transcat	0	2	2	0	2.50

Sensata Technologies currently has a consensus price target of $34.08, suggesting a potential upside of 19.53%. Transcat has a consensus price target of $114.00, suggesting a potential upside of 40.95%. Given Transcat’s stronger consensus rating and higher possible upside, analysts plainly believe Transcat is more favorable than Sensata Technologies.

Volatility & Risk

Sensata Technologies has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, Transcat has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.

Insider and Institutional Ownership

99.4% of Sensata Technologies shares are owned by institutional investors. Comparatively, 98.3% of Transcat shares are owned by institutional investors. 0.9% of Sensata Technologies shares are owned by insiders. Comparatively, 2.3% of Transcat shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Sensata Technologies and Transcat’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sensata Technologies	3.19%	17.12%	6.72%
Transcat	5.21%	6.47%	5.02%

Valuation & Earnings

This table compares Sensata Technologies and Transcat”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sensata Technologies	$3.93 billion	1.06	$128.48 million	$0.81	35.20
Transcat	$278.42 million	2.71	$14.52 million	$1.56	51.85

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

About Sensata Technologies

Sensata Technologies Holding plc develops, manufactures, and sells sensors and sensor-rich solutions, electrical protection components and systems, and other products used in mission-critical systems and applications in the United States and internationally. It operates in two segments, Performance Sensing and Sensing Solutions. The Performance Sensing segment offers pressure, temperature, and position sensors, high-voltage solutions, and other solutions used in mission-critical systems and applications, such as tire pressure monitoring, thermal management, electrical protection, regenerative braking, powertrain for engine/transmission, and exhaust management for automobiles, on-road trucks, and off-road equipment customers. The Sensing Solutions segment provides application-specific sensor and electrical protection products, such as pressure, temperature, and position sensors; motor and compressor protectors; high-voltage contactors; solid state relays; bimetal electromechanical controls; power inverters; charge controllers; battery management systems; operator controls; and power conversion systems. It serves automotive, on-road truck, construction, and original equipment manufacturers in agriculture, control, appliance, medical, energy and charging infrastructure, data/telecom, and aerospace and defense industries, as well as systems integrators, aerospace, and motor and compressor distributors. Sensata Technologies Holding plc was founded in 1916 and is headquartered in Attleboro, Massachusetts.

About Transcat

Transcat, Inc. provides calibration and laboratory instrument services in the United States, Canada, and internationally. It operates through two segments: Service and Distribution. The Service segment offers calibration, repair, inspection, analytical qualification, preventative maintenance, consulting, and other related services. This segment also provides CalTrak, a proprietary document and asset management system that is used to manage the workflow of its calibration service centers and customers’ assets; and Compliance, Control and Cost, an online customer portal that provides its customers with web-based asset management capability, as well as a safe and secure off-site archive of calibration and other service records. The Distribution segment sells and rents test, measurement, and control instruments for customers’ test and measurement instrumentation needs, as well as value added services, such as calibration/certification of equipment purchase, equipment rental, used equipment for sale, and equipment kitting. This segment markets and sells its products through website, digital and print advertising, proactive outbound sales, and an inbound call center. The company provides services and products to highly regulated industries, principally life science, which includes companies in the pharmaceutical, biotechnology, medical device, and other FDA-regulated industries; and additional industries, including aerospace and defense industrial manufacturing, energy and utilities, and other industries that require accuracy in processes and confirmation of the capabilities of their equipment. Transcat, Inc. was incorporated in 1964 and is headquartered in Rochester, New York.