Contrasting Flux Power (NASDAQ:FLUX) & Trans-Lux (OTCMKTS:TNLX)

Flux Power (NASDAQ:FLUX) and Trans-Lux (OTCMKTS:TNLX) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, earnings, risk, valuation and dividends.

Institutional & Insider Ownership

38.0% of Flux Power shares are owned by institutional investors. Comparatively, 11.9% of Trans-Lux shares are owned by institutional investors. 26.0% of Flux Power shares are owned by company insiders. Comparatively, 58.7% of Trans-Lux shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Flux Power and Trans-Lux”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flux Power	$60.82 million	0.49	-$8.33 million	($0.50)	-3.54
Trans-Lux	$15.55 million	N/A	-$4.07 million	($0.33)	-0.76

Trans-Lux has lower revenue, but higher earnings than Flux Power. Flux Power is trading at a lower price-to-earnings ratio than Trans-Lux, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Flux Power has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, Trans-Lux has a beta of -0.29, meaning that its stock price is 129% less volatile than the S&P 500.

Profitability

This table compares Flux Power and Trans-Lux’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flux Power	-13.13%	-2,054.56%	-26.99%
Trans-Lux	N/A	N/A	N/A

Analyst Ratings

This is a summary of current recommendations and price targets for Flux Power and Trans-Lux, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flux Power	0	0	2	0	3.00
Trans-Lux	0	0	0	0	0.00

Flux Power presently has a consensus target price of $6.00, suggesting a potential upside of 238.98%. Given Flux Power’s stronger consensus rating and higher probable upside, analysts plainly believe Flux Power is more favorable than Trans-Lux.

Summary

Trans-Lux beats Flux Power on 7 of the 13 factors compared between the two stocks.

About Flux Power

Flux Power Holdings, Inc., through its subsidiary Flux Power, Inc., designs, develops, manufactures, and sells lithium-ion energy storage solutions for lift trucks, airport ground support equipment, and other industrial and commercial applications in the North America. It offers battery management system (BMS) that provides cell balancing, charging, discharging, monitoring, and communication between the pack and the forklift. The company also provides 24-volt onboard chargers for its Class 3 Walkie pallet packs; and smart wall mounted chargers to interface with its BMS. It sells its products directly to small companies and end-users, as well as through original equipment manufacturers, lift equipment dealers, and battery distributors. The company is headquartered in Vista, California.

About Trans-Lux

Trans-Lux Corporation engages in the design and manufacture of digital display solutions and fixed digit scoreboards. It operates in two segments, Digital Product Sales; and Digital Product Lease and Maintenance. The Digital Product Sales segment sells indoor and outdoor digital product signage products. The Digital Product Lease and Maintenance segment is involved in the lease and maintenance of indoor and outdoor digital product signage. The company offers LED display systems for use by sports arenas and stadiums; financial institutions, including brokerage firms, banks, energy companies, insurance companies, and mutual fund companies; educational institutions; outdoor advertising companies; corporate and government communication centers; retail outlets; casinos, racetracks and other gaming establishments; airports, train stations, bus terminals, and other transportation facilities; movie theatres; and health maintenance organizations, as well as in various other applications. It also provides TLVision, which consists of full-color video products for use in posting alphanumeric data and displaying of full HD video; and turnkey installation and support services. The company markets its products through direct sales representatives, and a network of independent dealers and distributors in the United States and Canada; and internal salespeople and independent distributors in the rest of North America, Europe, the Middle East, South America, Africa, the Far East, and Australia. Trans-Lux Corporation was incorporated in 1920 and is headquartered in New York, New York. Trans-Lux Corporation operates as a subsidiary of Unilumin North America Inc.