Qumu Corporation (NASDAQ: QUMU) and TransAct Technologies (NASDAQ:TACT) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.
Risk & Volatility
Qumu Corporation has a beta of -0.43, suggesting that its stock price is 143% less volatile than the S&P 500. Comparatively, TransAct Technologies has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500.
This table compares Qumu Corporation and TransAct Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Qumu Corporation and TransAct Technologies’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Qumu Corporation||$29.80 million||0.91||-$5.91 million||($0.98)||-2.95|
|TransAct Technologies||$55.67 million||1.20||$7.14 million||$0.55||16.45|
TransAct Technologies has higher revenue and earnings than Qumu Corporation. Qumu Corporation is trading at a lower price-to-earnings ratio than TransAct Technologies, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
24.8% of Qumu Corporation shares are held by institutional investors. Comparatively, 37.2% of TransAct Technologies shares are held by institutional investors. 11.2% of Qumu Corporation shares are held by company insiders. Comparatively, 11.6% of TransAct Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
TransAct Technologies pays an annual dividend of $0.36 per share and has a dividend yield of 4.0%. Qumu Corporation does not pay a dividend. TransAct Technologies pays out 65.5% of its earnings in the form of a dividend.
This is a breakdown of current recommendations and price targets for Qumu Corporation and TransAct Technologies, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
TransAct Technologies has a consensus target price of $11.00, indicating a potential upside of 21.55%. Given TransAct Technologies’ higher probable upside, analysts clearly believe TransAct Technologies is more favorable than Qumu Corporation.
TransAct Technologies beats Qumu Corporation on 13 of the 14 factors compared between the two stocks.
About Qumu Corporation
Qumu Corporation (Qumu) is an enterprise video content management software company. The Company is engaged in providing tools businesses need to create, manage, secure, deliver and measure their videos. The Company operates through the enterprise video content management software business segment. Its video content management software solutions allow organizations to create, capture, organize and deliver content across the extended enterprise to a range of end points, including mobile devices and thick or thin clients. Qumu’s video platform supports both live and on-demand streaming. The Qumu platform is a video content management software solution that can be deployed as a perpetual software license, a term software license or a cloud-hosted software as a service (SaaS). Qumu Capture Studio is a portable software-enabled device that records, edits and publishes video and presentation content.
About TransAct Technologies
TransAct Technologies Incorporated (TransAct) designs, develops and sells market-specific solutions, including printers, terminals, software and other products for transaction-based and other industries. The Company operates through the segment, which includes design, development, assembly and marketing of transaction printers and terminals, and providing printer and terminal related software, services, supplies and spare parts. Its thermal, inkjet and impact printers and terminals generate labels and transaction records, such as receipts, tickets, coupons, register journals and other documents, as well as printed logging, and plotting of oil field and well drilling data. Its products are sold under the AccuDate, Ithaca, RESPONDER, Epic, EPICENTRAL and Printrex brand names. It focuses on various markets, such as food safety, banking and point-of-sale (POS), casino and gaming, lottery and Printrex, Inc. (Printrex), which serves the oil and gas, medical and mobile printing markets.
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