Comparing Transcontinental (TCLAF) & Its Competitors

Transcontinental (OTCMKTS:TCLAF) is one of 354 public companies in the “Commercial Services & Supplies” industry, but how does it contrast to its peers? We will compare Transcontinental to similar businesses based on the strength of its risk, profitability, earnings, valuation, dividends, institutional ownership and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings for Transcontinental and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Transcontinental	0	1	3	0	2.75
Transcontinental Competitors	1821	6105	8988	656	2.48

As a group, “Commercial Services & Supplies” companies have a potential upside of 10.67%. Given Transcontinental’s peers higher probable upside, analysts plainly believe Transcontinental has less favorable growth aspects than its peers.

Dividends

Transcontinental pays an annual dividend of $0.48 per share and has a dividend yield of 12.8%. Transcontinental pays out 35.8% of its earnings in the form of a dividend. As a group, “Commercial Services & Supplies” companies pay a dividend yield of 2.5% and pay out 71.4% of their earnings in the form of a dividend. Transcontinental is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Profitability

This table compares Transcontinental and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Transcontinental	N/A	N/A	N/A
Transcontinental Competitors	-61.39%	-127.51%	-1.36%

Institutional and Insider Ownership

51.7% of Transcontinental shares are held by institutional investors. Comparatively, 39.2% of shares of all “Commercial Services & Supplies” companies are held by institutional investors. 16.8% of shares of all “Commercial Services & Supplies” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Transcontinental and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Transcontinental	N/A	N/A	2.81
Transcontinental Competitors	$2.46 billion	$141.06 million	22.90

Transcontinental’s peers have higher revenue and earnings than Transcontinental. Transcontinental is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Transcontinental beats its peers on 8 of the 13 factors compared.

About Transcontinental

Transcontinental Inc. engages in the flexible packaging business in Canada, the United States, Latin America, the United Kingdom, Australia, and New Zealand. It operates through Packaging, Printing, and Media sectors. The Packaging sector engages in the extrusion, lamination, printing, and converting packaging solutions; and manufacturing and recycling flexible plastic, including rollstock, bags and pouches, coextruded films, shrink films and bags, and advanced coatings. This sector serves agriculture, beverage, cheese and dairy, coffee and tea, frozen, health and wellness, home and personal care, industrial, lawn and garden, meat and protein, pet food, snacks, confection and dairy foods, tobacco, music, and entertainment markets, as well as supermarkets. The Printing sector provides integrated services for retailers, such as premedia services, flyer and in-store marketing product printing, and door-to-door distribution, as well as print solutions for newspapers, magazines, 4-color books, and personalized and mass marketing products. The Media sector is involved in printing and digital publishing of educational and trade books, and specialized publications for professionals and newspapers in French and English. Transcontinental Inc. was founded in 1976 and is headquartered in Montreal, Canada.