Head to Head Comparison: Socket Mobile (NASDAQ:SCKT) and TransAct Technologies (NASDAQ:TACT)

Socket Mobile (NASDAQ:SCKT) and TransAct Technologies (NASDAQ:TACT) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, profitability and dividends.

Risk & Volatility

Socket Mobile has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, TransAct Technologies has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Socket Mobile	-17.13%	-16.10%	-10.45%
TransAct Technologies	-19.25%	-4.32%	-3.16%

Valuation & Earnings

This table compares Socket Mobile and TransAct Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Socket Mobile	$18.76 million	0.45	-$2.24 million	($0.36)	-2.96
TransAct Technologies	$43.38 million	0.89	-$9.86 million	($0.88)	-4.36

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

Insider and Institutional Ownership

3.8% of Socket Mobile shares are held by institutional investors. Comparatively, 74.5% of TransAct Technologies shares are held by institutional investors. 48.1% of Socket Mobile shares are held by company insiders. Comparatively, 16.5% of TransAct Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Socket Mobile and TransAct Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Socket Mobile	0	0	0	0	0.00
TransAct Technologies	0	0	2	0	3.00

TransAct Technologies has a consensus target price of $5.00, indicating a potential upside of 30.21%. Given TransAct Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe TransAct Technologies is more favorable than Socket Mobile.

Summary

TransAct Technologies beats Socket Mobile on 9 of the 14 factors compared between the two stocks.

About Socket Mobile

Socket Mobile, Inc. provides data capture and delivery solutions in the United States, Europe, Asia, and internationally. Its products and solutions are integrated into mobile applications for applications in the areas of point of sale, commercial services, asset tracking, manufacturing and quality control processes, transportation and logistics, event management, medical, and education. The company also offers cordless data capture devices that connect through Bluetooth and work with applications running on smartphones, mobile computers, and tablets; SocketScan and DuraScan 700 series, companion scanners and 800 series, attachable scanners, and wearables; and DuraSled, a barcode scanning sled that protects phones from impact damage and provides charging solutions. In addition, it offers D600, a handheld model to reads and writes various types of electronic SmartTags and transfers data with near-field communication (NFC); S550, a contactless membership card reader/writer; and S370 product that supports barcode scanning, and NFC reading and writing technologies. Further, the company provides SocketCam C820 and C860, which are camera-based barcode scanners; software developer kits, such as CaptureSDK that enables the App providers to modify captured data, control the placement of the barcoded or RFID data in their applications, and control the feedback to the user. It serves retail, commercial services, industrial and manufacturing, transportation and logistics, and healthcare industries through a network of distributors, online resellers, and application providers, as well as online stores. The company was formerly known as Socket Communications, Inc. and changed its name to Socket Mobile, Inc. in April 2008. Socket Mobile, Inc. was founded in 1992 and is headquartered in Fremont, California.

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.