Critical Survey: TransAct Technologies (NASDAQ:TACT) & Acer (OTCMKTS:ACEYY)

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TransAct Technologies	$72.63 million	0.67	$4.75 million	$0.47	10.40
Acer	N/A	N/A	N/A	($11.67)	-0.65

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

Analyst Ratings

This is a summary of recent recommendations for TransAct Technologies and Acer, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TransAct Technologies	0	0	1	0	3.00
Acer	0	2	0	0	2.00

TransAct Technologies presently has a consensus target price of $9.00, suggesting a potential upside of 84.05%. Given TransAct Technologies’ stronger consensus rating and higher probable upside, equities analysts plainly believe TransAct Technologies is more favorable than Acer.

Insider and Institutional Ownership

74.5% of TransAct Technologies shares are owned by institutional investors. 14.9% of TransAct Technologies shares are owned 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TransAct Technologies	6.54%	15.96%	11.23%
Acer	N/A	N/A	N/A

Summary

TransAct Technologies beats Acer on 11 of the 11 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 Acer

Acer Incorporated researches, designs, markets, and services personal computers (PCs), information technology (IT) products, and tablet products in the United States, Mainland China, Taiwan, and internationally. The company offers notebook and desktop PCs; LCD monitors; projectors; gaming and esports platform; gadgets; servers; cloud and E-business and services; and commercial and digital signage solutions, cyber security and datacenter, mobility, home appliances, beverages, and AI media. It also provides electronic information, insurance captive, cloud technology, system development and integration; intelligent transportation and electronic ticketing programs and services; and investment funds. In addition, the company repairs and maintains IT products; researches, designs, and develops Internet of Things platform; sells communication products, computer, apparatus system, and peripheral equipment; develops Internet of Beings and cloud technology; and integrates cloud technology, software, and hardware. Further, it researches, develops, and sells batteries and smart bicycle speedometers; sells commercial and cloud application software and services; and designs, develops, and sells computer software and hardware, as well as provides B2B virtual reality and advisory related services. Additionally, the company engages in solar optronics business; trading and distribution of synthetic and natural rubber, plastic resins, and related fillers; agency of video game console and peripherals; hotel management services; property management business; operates and maintains eSports platform; and human resources and project service, as well as provides intelligent medical examination and data interpretation analysis, medical big data, and health management and related information exchange services. It also sells health supplements and manufactures lithium batteries. Acer Incorporated was incorporated in 1976 and is headquartered in New Taipei City, Taiwan.