Transcat (NASDAQ:TRNS – Get Free Report) and Capstone Therapeutics (NASDAQ:CAPS – Get Free Report) are both small-cap industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.
Volatility and Risk
Transcat has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, Capstone Therapeutics has a beta of -1.52, indicating that its stock price is 252% less volatile than the S&P 500.
Earnings & Valuation
This table compares Transcat and Capstone Therapeutics”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Transcat | $331.88 million | 2.41 | $5.38 million | $0.58 | 147.19 |
| Capstone Therapeutics | $48.11 million | 0.08 | -$21.23 million | ($3.37) | -0.08 |
Transcat has higher revenue and earnings than Capstone Therapeutics. Capstone Therapeutics is trading at a lower price-to-earnings ratio than Transcat, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
98.3% of Transcat shares are held by institutional investors. Comparatively, 2.5% of Capstone Therapeutics shares are held by institutional investors. 1.8% of Transcat shares are held by company insiders. Comparatively, 39.3% of Capstone Therapeutics shares are held 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.
Profitability
This table compares Transcat and Capstone Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Transcat | 1.62% | 5.84% | 3.78% |
| Capstone Therapeutics | -41.26% | -114.15% | -39.74% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Transcat and Capstone Therapeutics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Transcat | 1 | 1 | 1 | 1 | 2.50 |
| Capstone Therapeutics | 1 | 0 | 0 | 0 | 1.00 |
Transcat currently has a consensus target price of $105.50, indicating a potential upside of 23.58%. Given Transcat’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Transcat is more favorable than Capstone Therapeutics.
Summary
Transcat beats Capstone Therapeutics on 14 of the 15 factors compared between the two stocks.
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.
About Capstone Therapeutics
Capstone Therapeutics Corp., a biotechnology company, develops novel peptides and other molecules for helping patients with under-served medical conditions in the United States. It develops Apo E mimetic peptide molecule AEM-28 and its analogs that have completed Phase Ia and Phase Ib/IIa clinical trials for lipoprotein metabolism. The company was formerly known as OrthoLogic Corp. and changed its name to Capstone Therapeutics Corp. in May 2010. Capstone Therapeutics Corp. was founded in 1987 and is headquartered in Tempe, Arizona.
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