Analyzing Vuzix (NASDAQ:VUZI) & TransAct Technologies (NASDAQ:TACT)

TransAct Technologies (NASDAQ:TACT) and Vuzix (NASDAQ:VUZI) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, profitability, valuation and risk.

Analyst Recommendations

This is a breakdown of current ratings and target prices for TransAct Technologies and Vuzix, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TransAct Technologies	0	0	2	0	3.00
Vuzix	0	0	0	0	0.00

TransAct Technologies currently has a consensus target price of $5.00, indicating a potential upside of 12.11%. Given TransAct Technologies’ stronger consensus rating and higher probable upside, research analysts plainly believe TransAct Technologies is more favorable than Vuzix.

Institutional and Insider Ownership

74.5% of TransAct Technologies shares are owned by institutional investors. Comparatively, 35.9% of Vuzix shares are owned by institutional investors. 15.5% of TransAct Technologies shares are owned by insiders. Comparatively, 8.3% of Vuzix shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares TransAct Technologies and Vuzix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TransAct Technologies	-18.00%	-4.02%	-2.88%
Vuzix	-707.90%	-113.11%	-101.83%

Risk and Volatility

TransAct Technologies has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Vuzix has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500.

Valuation & Earnings

This table compares TransAct Technologies and Vuzix”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TransAct Technologies	$43.38 million	1.04	-$9.86 million	($0.86)	-5.19
Vuzix	$5.76 million	28.20	-$73.54 million	($0.51)	-4.12

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

Summary

TransAct Technologies beats Vuzix on 10 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 Vuzix

Vuzix Corporation designs, manufactures, and markets smart glasses and augmented reality (AR) technologies and products for the enterprise, medical, defense, and consumer markets. The company’s products include head-mounted smart personal display and wearable computing devices that offer users a portable viewing experience, provide solutions for mobility, wearable displays, and augmented reality, as well as original equipment manufacturer waveguide optical components and display engines. It also provides certified ERP SaaS logistics solution to support hand-held mobile phones and scanners used in logistics, warehousing, and manufacturing applications. It holds approximately 375 patents and patents pending and various IP licenses in the fields of optics, head-mounted displays, and augmented reality Video Eyewear field. It sells its products through resellers, distributors, direct to commercial customers, and online stores, as well as various Vuzix operated web stores in North America, Europe, the Asia-Pacific, and internationally. The company was formerly known as Icuiti Corporation and changed its name to Vuzix Corporation in September 2007. Vuzix Corporation was incorporated in 1997 and is headquartered in West Henrietta, New York.