HeadHead Contrast: Logitech (LOGI) and TransAct Technologies (TACT)

Logitech (NASDAQ: LOGI) and TransAct Technologies (NASDAQ:TACT) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, earnings and profitability.

Insider & Institutional Ownership

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32.2% of Logitech shares are held by institutional investors. Comparatively, 41.5% of TransAct Technologies shares are held by institutional investors. 2.2% of Logitech shares are held by insiders. Comparatively, 12.5% of TransAct Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Logitech and TransAct Technologies’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Logitech $2.57 billion 2.60 $208.54 million $1.34 30.31
TransAct Technologies $56.31 million 1.39 $3.21 million $0.60 17.58

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

Dividends

Logitech pays an annual dividend of $0.41 per share and has a dividend yield of 1.0%. TransAct Technologies pays an annual dividend of $0.36 per share and has a dividend yield of 3.4%. Logitech pays out 30.6% of its earnings in the form of a dividend. TransAct Technologies pays out 60.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a summary of recent ratings and price targets for Logitech and TransAct Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Logitech 1 0 4 0 2.60
TransAct Technologies 0 0 1 0 3.00

Logitech presently has a consensus price target of $45.80, indicating a potential upside of 12.78%. TransAct Technologies has a consensus price target of $17.00, indicating a potential upside of 61.14%. Given TransAct Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe TransAct Technologies is more favorable than Logitech.

Profitability

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

Net Margins Return on Equity Return on Assets
Logitech 8.16% 24.12% 13.91%
TransAct Technologies 5.40% 16.80% 13.23%

Volatility and Risk

Logitech has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, TransAct Technologies has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.

Summary

Logitech beats TransAct Technologies on 10 of the 16 factors compared between the two stocks.

Logitech Company Profile

Logitech International S.A., through its subsidiaries, designs, manufactures, and markets products that allow people to connect through music, gaming, video, computing, and other digital platforms worldwide. The company offers portable wireless Bluetooth speakers, PC speakers, PC headsets, in-ear headphones, and wireless audio wearables; gaming mice, keyboards, headsets, mousepads, and steering wheels and flight sticks; and audio and video, and other products that connect small and medium sized user groups. It also provides keyboards and covers for tablets and smartphones, as well as other accessories for mobile devices; pointing devices, such as PC and Mac-related mice, touchpads, and presenters; corded and cordless keyboards, living room keyboards, and keyboard-and-mouse combos; PC-based Webcams; and remote control and home automation products. The company sells its products through direct sales to retailers and e-tailers, as well as indirect sales through distributors. Its channel network includes consumer electronics distributors, retailers, mass merchandisers, specialty electronics stores, computer and telecommunications stores, value-added resellers, and online merchants. The company was founded in 1981 and is headquartered in Lausanne, Switzerland.

TransAct Technologies Company Profile

TransAct Technologies Incorporated designs, develops, assembles, and markets transaction-based and specialty printers and terminals in the United States and internationally. It offers thermal, inkjet, and impact printers and terminals to generate labels and transaction records, such as receipts, tickets, coupons, register journals, and other documents, as well as printed logging and plotting of data. The company also provides consumable products, including inkjet cartridges, ribbons, receipt papers, color thermal papers, food safety labels, and other printing supplies, as well as replacement parts; maintenance, repair, and testing services; and refurbished printers. 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 AccuDate terminals for the restaurant solutions market combine hardware and software in a device that includes an operating system, touchscreen, and one or two thermal print mechanisms. The company markets its products under the AccuDate, Epic, EPICENTRAL, Ithaca, Responder, and Printrex brand names for restaurant, point of sale automation and banking, casino and gaming, lottery, mobile, oil and gas, and hospitality markets, as well as government. It sells its products to original equipment manufacturers, value-added resellers, and distributors, as well as directly and online to end-users. TransAct Technologies Incorporated was founded in 1996 and is headquartered in Hamden, Connecticut.

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