TransAct Technologies (TACT) vs. Hauppauge Digital (HAUP) Financial Analysis

TransAct Technologies (NASDAQ:TACT) and Hauppauge Digital (OTCMKTS:HAUP) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
TransAct Technologies 5.91% 18.19% 14.03%
Hauppauge Digital N/A N/A N/A

Analyst Recommendations

This is a breakdown of recent ratings and target prices for TransAct Technologies and Hauppauge Digital, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TransAct Technologies 0 0 1 0 3.00
Hauppauge Digital 0 0 0 0 N/A

TransAct Technologies presently has a consensus target price of $17.00, indicating a potential upside of 13.33%. Given TransAct Technologies’ higher possible upside, equities research analysts plainly believe TransAct Technologies is more favorable than Hauppauge Digital.

Risk & Volatility

TransAct Technologies has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Hauppauge Digital has a beta of -0.42, suggesting that its share price is 142% less volatile than the S&P 500.

Institutional and Insider Ownership

41.4% of TransAct Technologies shares are owned by institutional investors. 12.5% of TransAct Technologies shares are owned by company insiders. Comparatively, 13.0% of Hauppauge Digital shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

TransAct Technologies pays an annual dividend of $0.36 per share and has a dividend yield of 2.4%. Hauppauge Digital does not pay a dividend. TransAct Technologies pays out 60.0% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares TransAct Technologies and Hauppauge Digital’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TransAct Technologies $56.31 million 1.97 $3.21 million $0.60 25.00
Hauppauge Digital N/A N/A N/A N/A N/A

TransAct Technologies has higher revenue and earnings than Hauppauge Digital.

Summary

TransAct Technologies beats Hauppauge Digital on 9 of the 11 factors compared between the two stocks.

About TransAct Technologies

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.

About Hauppauge Digital

Hauppauge Digital Inc. designs, develops, manufactures, and markets various consumer electronic hardware and software products that link TV and other video delivery technologies to personal computers and mobile devices. The company offers TV receivers and tuners, including Broadway that connects to a TV signal and then transmits that TV signal through a Wi-Fi network or the Internet; digital TV receivers and hybrid analog/digital TV receivers, which enable a PC user to watch digital television in a resizable window on a PC or laptop screen; PCTV systems TV tuner products that allow users to view television programming on their computers; and analog TV tuners. It also provides video recorder products, such as USB-Live2, a standard definition video recorder used to record video tapes and other types of video into a PC; HD PVR 2, a kit for gamers to record high definition videos; HD PVR, a high-definition video recorder for making compressed video recordings, as well as to record old home video tapes into an AVCHD format; and Colossus to record high definition video from a cable TV or satellite set top box. In addition, the company offers other software products comprising WinTV application, a PC based TV watching, pause, and recoding application; WinTV Extend software product, a PC based Internet video server that streams live TV or other video content to remote devices; Impact video capture board for PC based video conferencing and video capture in industrial applications; MediaMVP-HD, a Linux-based digital media device that link TV sets and PCs; and MediaMVP to watch and listen to PC-based videos, music, and pictures on a TV set through a home network, as well as provides an on-TV-screen display of media directory listings. The company sells its products through retailers, PC manufacturers, and distributors in the Americas, Europe, and Asia. Hauppauge Digital Inc. was founded in 1994 and is headquartered in Hauppauge, New York.

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