TransAct Technologies (NASDAQ:TACT – Get Free Report) and Quantum (NASDAQ:QMCO – Get Free Report) are both small-cap technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.
Risk and Volatility
TransAct Technologies has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, Quantum has a beta of 3.08, suggesting that its share price is 208% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and price targets for TransAct Technologies and Quantum, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TransAct Technologies | 1 | 1 | 0 | 0 | 1.50 |
| Quantum | 1 | 0 | 4 | 0 | 2.60 |
Institutional & Insider Ownership
74.5% of TransAct Technologies shares are owned by institutional investors. Comparatively, 63.7% of Quantum shares are owned by institutional investors. 19.2% of TransAct Technologies shares are owned by company insiders. Comparatively, 41.0% of Quantum shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares TransAct Technologies and Quantum”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TransAct Technologies | $51.48 million | 0.96 | -$1.24 million | ($0.04) | -120.25 |
| Quantum | $279.58 million | 4.86 | -$101.05 million | ($13.24) | -2.61 |
TransAct Technologies has higher earnings, but lower revenue than Quantum. TransAct Technologies is trading at a lower price-to-earnings ratio than Quantum, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares TransAct Technologies and Quantum’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% |
| Quantum | -80.76% | N/A | -7.28% |
Summary
Quantum 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 Quantum
Quantum Corporation provides products for storing and managing digital video and unstructured data in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers Myriad All-Flash File and Object Storage Software for high performance enterprise unstructured data applications such as AI, machine learning, and data analytics; Unified Surveillance Platform Software that unified compute and storage for video surveillance recording, storage, and analytics; StorNext Hybrid Flash/Disk File Storage Software for video editing, post-production, and streaming applications, as well as digital file archives; and CatDV Asset Management Software for indexing, cataloging, enriching video, audio, and image files, and workflow orchestration. It also provides ActiveScale Object Storage Software that scalable and durable storage for long term data preservation and protection; DXi Backup Appliances to build backup appliances for high-speed backup and recovery and multisite data protection; and Scalar Tape Storage that secure storage for long term data archiving and offline data protection which are used by hyperscalers and enterprises. In addition, the company sells linear tape-open (LTO) a tape drives for small business data protection and archiving; and LTO media for use in tape storage systems. Further, it offers global support, managed services, customer support agreements, software subscriptions, installation, education, and consulting and training services, as well as Quantum-as-a-Service. The company sells its products through a network of distributors, value-added resellers, direct marketing resellers, original equipment manufacturers, and other suppliers, as well as directly to corporate entities and government agencies. It has a partnership with Tiger Surveillance to deliver end-to-end solutions for long-term retention and archiving of video surveillance data. Quantum Corporation was founded in 1980 and is headquartered in San Jose, California.
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