Quantum (NASDAQ:QMCO) & TransAct Technologies (NASDAQ:TACT) Critical Comparison

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

Risk and Volatility

Quantum has a beta of 3.08, indicating that its share price is 208% more volatile than the S&P 500. Comparatively, TransAct Technologies has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.

Valuation and Earnings

This table compares Quantum 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
Quantum	$279.58 million	4.86	-$101.05 million	($13.24)	-2.61
TransAct Technologies	$51.48 million	0.96	-$1.24 million	($0.04)	-120.25

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

Insider & Institutional Ownership

63.7% of Quantum shares are owned by institutional investors. Comparatively, 74.5% of TransAct Technologies shares are owned by institutional investors. 41.0% of Quantum shares are owned by company insiders. Comparatively, 19.2% of TransAct Technologies 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Quantum	-80.76%	N/A	-7.28%
TransAct Technologies	-0.75%	-1.25%	-0.85%

Analyst Ratings

This is a summary of current ratings for Quantum and TransAct Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quantum	1	0	4	0	2.60
TransAct Technologies	1	1	0	0	1.50

Quantum currently has a consensus price target of $26.50, indicating a potential downside of 23.19%. Given Quantum’s stronger consensus rating and higher possible upside, equities analysts clearly believe Quantum is more favorable than TransAct Technologies.

Summary

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

About Quantum

Quantum Corporation provides products for storing and managing digital video and unstructured data in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers Myriad All-Flash File and Object Storage Software for high performance enterprise unstructured data applications such as AI, machine learning, and data analytics; Unified Surveillance Platform Software that unified compute and storage for video surveillance recording, storage, and analytics; StorNext Hybrid Flash/Disk File Storage Software for video editing, post-production, and streaming applications, as well as digital file archives; and CatDV Asset Management Software for indexing, cataloging, enriching video, audio, and image files, and workflow orchestration. It also provides ActiveScale Object Storage Software that scalable and durable storage for long term data preservation and protection; DXi Backup Appliances to build backup appliances for high-speed backup and recovery and multisite data protection; and Scalar Tape Storage that secure storage for long term data archiving and offline data protection which are used by hyperscalers and enterprises. In addition, the company sells linear tape-open (LTO) a tape drives for small business data protection and archiving; and LTO media for use in tape storage systems. Further, it offers global support, managed services, customer support agreements, software subscriptions, installation, education, and consulting and training services, as well as Quantum-as-a-Service. The company sells its products through a network of distributors, value-added resellers, direct marketing resellers, original equipment manufacturers, and other suppliers, as well as directly to corporate entities and government agencies. It has a partnership with Tiger Surveillance to deliver end-to-end solutions for long-term retention and archiving of video surveillance data. Quantum Corporation was founded in 1980 and is headquartered in San Jose, 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.