TransAct Technologies (NASDAQ:TACT – Get Free Report) and One Stop Systems (NASDAQ:OSS – 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 institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.
Volatility and Risk
TransAct Technologies has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, One Stop Systems has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500.
Valuation & Earnings
This table compares TransAct Technologies and One Stop Systems”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 | 0.98 | -$1.24 million | ($0.04) | -122.75 |
| One Stop Systems | $32.22 million | 7.21 | $5.09 million | $0.05 | 186.20 |
One Stop Systems has lower revenue, but higher earnings than TransAct Technologies. TransAct Technologies is trading at a lower price-to-earnings ratio than One Stop Systems, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for TransAct Technologies and One Stop Systems, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TransAct Technologies | 1 | 1 | 0 | 0 | 1.50 |
| One Stop Systems | 1 | 1 | 3 | 1 | 2.67 |
One Stop Systems has a consensus price target of $16.00, suggesting a potential upside of 71.86%. Given One Stop Systems’ stronger consensus rating and higher probable upside, analysts plainly believe One Stop Systems is more favorable than TransAct Technologies.
Insider and Institutional Ownership
74.5% of TransAct Technologies shares are held by institutional investors. Comparatively, 32.7% of One Stop Systems shares are held by institutional investors. 19.2% of TransAct Technologies shares are held by insiders. Comparatively, 3.9% of One Stop Systems shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares TransAct Technologies and One Stop Systems’ 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% |
| One Stop Systems | 2.67% | 2.22% | 1.71% |
Summary
One Stop Systems beats TransAct Technologies on 12 of the 15 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 One Stop Systems
One Stop Systems, Inc. engages in the design, manufacture, and marketing of high-performance compute, high speed storage hardware and software, switch fabrics, and systems for edge deployments in the United States and internationally. The company's systems are built using the central processing unit, graphical processing unit, high-speed switch fabrics, and flash storage technologies. It provides custom servers, data acquisition platforms, compute accelerators, solid-state storage arrays, and system I/O expansion systems, as well as edge optimized industrial and panel PCs, tablets, and handheld compute devices. The company also offers ruggedized mobile tablets and handhelds that meet the specialized requirement for devices deployed at the edge in a diverse set of environmental conditions. It sells its products to multinational companies, governmental agencies, military contractors, military services, and technology providers through its website, web store, direct sales team, and original equipment manufacturer focused sales, as well as through a network of resellers and distributors. The company was founded in 1998 and is headquartered in Escondido, California.
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