Contrasting Transcat (TRNS) and Methode Electronics (MEI)
Transcat (NASDAQ: TRNS) and Methode Electronics (NYSE:MEI) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.
Valuation and Earnings
This table compares Transcat and Methode Electronics’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Transcat||$143.90 million||0.78||$4.52 million||$0.68||23.06|
|Methode Electronics||$816.50 million||1.82||$92.90 million||$2.44||15.92|
Risk and Volatility
Transcat has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500. Comparatively, Methode Electronics has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500.
This is a summary of current ratings and target prices for Transcat and Methode Electronics, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Transcat currently has a consensus price target of $20.00, indicating a potential upside of 27.55%. Methode Electronics has a consensus price target of $48.00, indicating a potential upside of 23.55%. Given Transcat’s higher probable upside, equities research analysts clearly believe Transcat is more favorable than Methode Electronics.
Insider & Institutional Ownership
57.1% of Transcat shares are held by institutional investors. Comparatively, 87.2% of Methode Electronics shares are held by institutional investors. 8.8% of Transcat shares are held by insiders. Comparatively, 4.4% of Methode Electronics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares Transcat and Methode Electronics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Methode Electronics pays an annual dividend of $0.44 per share and has a dividend yield of 1.1%. Transcat does not pay a dividend. Methode Electronics pays out 18.0% of its earnings in the form of a dividend.
Methode Electronics beats Transcat on 10 of the 14 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.
Methode Electronics Company Profile
Methode Electronics, Inc. (Methode) is a manufacturer of component and subsystem devices. The Company designs, manufactures and markets devices employing electrical, radio remote control, electronic, wireless and sensing technologies. The Company operates through segments, including Automotive, Interface, Power Products and Other. The Automotive segment supplies electronic and electro-mechanical devices and related products to automobile original equipment manufacturers (OEMs). The Interface segment provides a range of copper and fiber-optic interface and interface solutions. The Power Products segment manufactures braided flexible cables, current-carrying laminated bus devices, custom power-product assemblies, such as PowerRail solution, high-current low voltage flexible power cabling systems and powder coated bus bars. The Other segment includes medical devices, inverters and battery systems, and insulated gate bipolar transistor solutions.
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