Cass Information Systems, Inc (CASS) vs Transcat, Inc. (TRNS)

Cass Information Systems, Inc and Transcat, Inc. are both Specialty Business Services companies. Transcat, Inc. is the larger, with a market value of $806.2M against $696.4M — 1.2× the size. Cass Information Systems, Inc trades at the lower P/E: 19.1× against 237×. Transcat, Inc. grew revenue faster over the last twelve months: 20.9% against 6.52%. Cass Information Systems, Inc has the higher net margin (17.1% vs 0.99%) and the higher return on invested capital (176.3% vs 1.79%). Across the 21 metrics below, Cass Information Systems, Inc leads on 15 and Transcat, Inc. on 6.

Valuation

Metric CASS TRNS Specialty Business Services median
P/E 19.06 237.11 23.86
P/S 3.22 2.36 1.06
P/B 2.83 2.71 2.37
Price to free cash flow 16.54 32.35 16.54
EV/EBITDA n/m 23.54 11.51
EV/Sales 2.16 2.66 1.51
Earnings yield 5.25% 0.42% 2.14%
Free cash flow yield 6.05% 3.09% 1.55%

Profitability

Metric CASS TRNS Specialty Business Services median
Gross margin 92.56% 32.50% 35.31%
Operating margin 0.00% 3.34% 3.43%
Net margin 17.08% 0.99% 1.67%
Free cash flow margin 19.49% 7.28% 3.28%
Return on equity 15.12% 1.16% 0.58%
Return on assets 1.52% 0.78% 0.33%
Return on invested capital 176.26% 1.79% 0.65%

Growth

Metric CASS TRNS Specialty Business Services median
Revenue growth (TTM) 6.52% 20.91% 6.04%
EPS growth (last fiscal year) 87.77% (63.69%) —
Revenue growth, 5-year CAGR 6.97% 13.87% 7.66%
Net income growth, 5-year CAGR 6.88% (7.15%) 0.00%

Health

Metric CASS TRNS Specialty Business Services median
Debt to equity 0.00 0.36 0.21
Current ratio 0.61 2.49 1.62
Net debt to EBITDA 0.00 2.40 1.16

Dividend

Metric CASS TRNS Specialty Business Services median
Dividend yield 2.78% — 1.61%
Payout ratio 0.49 0.00 0.00

Size

Metric CASS TRNS Specialty Business Services median
Market cap 696.40m 806.16m 879.14m

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