On Track Innovations (OTCMKTS:OTIVF) & Transphorm (OTCMKTS:TGAN) Head-To-Head Contrast

Transphorm (OTCMKTS:TGANGet Rating) and On Track Innovations (OTCMKTS:OTIVFGet Rating) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Earnings & Valuation

This table compares Transphorm and On Track Innovations’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Transphorm $24.05 million 10.87 -$10.23 million ($0.20) -24.50
On Track Innovations $14.88 million 0.30 -$11.66 million N/A N/A

Transphorm has higher revenue and earnings than On Track Innovations.

Volatility and Risk

Transphorm has a beta of -1.24, meaning that its stock price is 224% less volatile than the S&P 500. Comparatively, On Track Innovations has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.

Institutional and Insider Ownership

33.6% of On Track Innovations shares are held by institutional investors. 3.0% of Transphorm shares are held by company insiders. Comparatively, 8.0% of On Track Innovations shares are held by company 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.

Profitability

This table compares Transphorm and On Track Innovations’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Transphorm -42.56% N/A -38.06%
On Track Innovations -63.06% -1,110.80% -62.59%

Analyst Ratings

This is a summary of recent ratings for Transphorm and On Track Innovations, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Transphorm 0 0 2 0 3.00
On Track Innovations 0 0 0 0 N/A

Transphorm currently has a consensus target price of $10.00, suggesting a potential upside of 104.08%. Given Transphorm’s higher possible upside, equities research analysts clearly believe Transphorm is more favorable than On Track Innovations.

Summary

Transphorm beats On Track Innovations on 8 of the 11 factors compared between the two stocks.

About Transphorm (Get Rating)

Transphorm, Inc. develops, manufactures, and sells gallium nitride (GaN) semiconductor components used in power conversion in Mainland China, Hong Kong, Taiwan, the United States, Japan, South Korea, and Europe. Its GaN devices allows customers to design smaller, lighter, and cooler power systems creating increased functional value in end products, including smartphone power adapters/fast-chargers, power supplies for datacenter servers/communication, industrial power converters, and chargers/converters/inverters for electric vehicles. The company offers its products through sales representatives and distributors. Transphorm, Inc. headquartered in Goleta, California.

About On Track Innovations (Get Rating)

On Track Innovations Ltd., together with its subsidiaries, designs, develops, and markets cashless payment solutions worldwide. It operates in two segments, Retail and Petroleum. The company's product portfolio includes readers, controllers and terminals, management software, payment services, and Payment System as a Service (PSaaS). It offers OtiMetry System that incorporates telemetry, sales, and operations into solution with cloud control, and real-time online management and alerts; TRIO-IQ, a telemetry gateway and EMV payment reader; TRIO, a payment device for installation in kiosks and vending machines; UNO-8 and UNO-PLUS contactless readers for unattended retail environments with self-service payment stations, including ATMs, toll roads, access control, and mass transit validators; and controllers and gateways comprises OTI TeleBox, a machine-to-machine controller that enables the communication between machines, and GoBox, a machine-to-machine controller that communicates between machines, cashless readers, and remote servers. The company also provides a terminal management system, which is a cloud-based system that provides real-time control and insights of each machine enabling operators to remotely manage their terminal's fleet; and cloud based vending management system and vending BI. In addition, it offers payment services, including payment service API, an application programming interface; close loop payment that supports close-loop payment cards; and APIs for integration with mobile payment solutions, as well as original equipment manufacturer (OEM) payment solutions. The company's readers are certified by various card associations and support Apple Pay, Google Pay, Samsung Pay, MIFARE, FeliCa, and others. The company was formerly known as De-Bug Innovations Ltd. and changed its name to On Track Innovations Ltd. in July 1991. On Track Innovations Ltd. was incorporated in 1990 and is headquartered in Yokneam Illit, Israel.

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