Quad Graphics, Inc (QUAD) vs Transcat, Inc. (TRNS)

Quad Graphics, Inc and Transcat, Inc. are both Specialty Business Services companies. Transcat, Inc. is the larger, with a market value of $944.1M against $391.9M — 2.4× the size. Quad Graphics, Inc trades at the lower P/E: 13.7× against 208×. Transcat, Inc. grew revenue faster over the last twelve months: 20.0% against −4.88%. Transcat, Inc. has the higher net margin (1.26% vs 1.12%) and the lower return on invested capital (1.96% vs 9.68%). Across the 22 metrics below, Quad Graphics, Inc leads on 14 and Transcat, Inc. on 8.

Valuation

Metric QUAD TRNS Specialty Business Services median
P/E 13.70 208.15 26.30
P/S 0.15 2.62 1.10
P/B 3.02 3.08 2.32
Price to free cash flow 4.57 41.43 17.44
EV/EBITDA 4.98 25.82 10.90
EV/Sales 0.33 2.93 1.46
Earnings yield 7.30% 0.48% 2.01%
Free cash flow yield 21.87% 2.41% 1.41%

Profitability

Metric QUAD TRNS Specialty Business Services median
Gross margin 21.39% 32.79% 33.75%
Operating margin 3.53% 3.63% 3.53%
Net margin 1.12% 1.26% 1.88%
Free cash flow margin 3.35% 6.32% 3.18%
Return on equity 24.40% 1.52% 0.00%
Return on assets 2.10% 0.93% 0.00%
Return on invested capital 9.68% 1.96% 0.00%

Growth

Metric QUAD TRNS Specialty Business Services median
Revenue growth (TTM) (4.88%) 20.04% 6.08%
EPS growth (last fiscal year) 150.47% (63.69%) 3.41%
Revenue growth, 5-year CAGR (3.75%) 13.87% 7.60%
Net income growth, 5-year CAGR 0.00% (7.15%) 0.00%

Health

Metric QUAD TRNS Specialty Business Services median
Debt to equity 3.68 0.38 0.24
Current ratio 0.97 2.57 1.79
Net debt to EBITDA 1.73 2.40 0.69

Dividend

Metric QUAD TRNS Specialty Business Services median
Dividend yield 4.93% — 2.21%
Payout ratio 0.71 — 0.37

Size

Metric QUAD TRNS Specialty Business Services median
Market cap 391.86m 944.06m 725.94m

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