Trans-Lux (OTCMKTS:TNLX) versus Preformed Line Products (NASDAQ:PLPC) Financial Analysis

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Trans-Lux and Preformed Line Products, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trans-Lux	0	0	0	0	0.00
Preformed Line Products	0	1	0	1	3.00

Preformed Line Products has a consensus price target of $275.00, suggesting a potential downside of 17.60%. Given Preformed Line Products’ stronger consensus rating and higher possible upside, analysts clearly believe Preformed Line Products is more favorable than Trans-Lux.

Institutional & Insider Ownership

11.9% of Trans-Lux shares are owned by institutional investors. Comparatively, 41.2% of Preformed Line Products shares are owned by institutional investors. 58.7% of Trans-Lux shares are owned by insiders. Comparatively, 33.0% of Preformed Line Products shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Trans-Lux has a beta of -1.89, suggesting that its stock price is 289% less volatile than the S&P 500. Comparatively, Preformed Line Products has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.

Valuation & Earnings

This table compares Trans-Lux and Preformed Line Products”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trans-Lux	$12.86 million	0.01	-$3.48 million	($0.25)	-0.04
Preformed Line Products	$669.34 million	2.44	$35.28 million	$6.95	48.02

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

Profitability

This table compares Trans-Lux and Preformed Line Products’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trans-Lux	N/A	N/A	N/A
Preformed Line Products	4.92%	8.99%	6.53%

Summary

Preformed Line Products beats Trans-Lux on 13 of the 14 factors compared between the two stocks.

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.

About Preformed Line Products

Preformed Line Products Company, together with its subsidiaries, designs and manufactures products and systems that are used in the construction and maintenance of overhead, ground-mounted, and underground networks for the energy, telecommunication, cable, data communication, and other industries. The company offers optical ground wire products to support, protect, terminate, and splice transmission and distribution lines, as well as bolted, welded, and compressed connectors for substations; and string hardware products, polymer insulators, wildlife protection, substation fittings, and motion control devices. It also provides rugged outside plant closures to protect and support wireline and wireless networks, such as copper cable or fiber optic cable from moisture, environmental hazards, and other contaminants; and hardware assemblies, pole line hardware, plastic products, cable dynamics/vibration solutions, interior/exterior connectors, tools, and urethane solutions that are used by energy, renewable energy, communications, cable, and special industries for various applications. The company serves public and private energy utilities and communication companies, cable operators, governmental agencies, contractors and subcontractors, distributors, and value-added resellers in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. It markets its products through a direct sales force, as well as through manufacturing representatives. Preformed Line Products Company was incorporated in 1947 and is headquartered in Mayfield Village, Ohio.