Financial Review: Powerfleet (AIOT) and Its Competitors

Powerfleet (NASDAQ:AIOT) is one of 40 public companies in the “Communications equipment, not elsewhere classified” industry, but how does it weigh in compared to its rivals? We will compare Powerfleet to related businesses based on the strength of its valuation, institutional ownership, profitability, analyst recommendations, earnings, risk and dividends.

Analyst Ratings

This is a summary of recent ratings for Powerfleet and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Powerfleet	0	0	1	0	3.00
Powerfleet Competitors	172	457	940	48	2.53

Powerfleet presently has a consensus price target of $10.00, indicating a potential upside of 104.92%. As a group, “Communications equipment, not elsewhere classified” companies have a potential upside of 20.02%. Given Powerfleet’s stronger consensus rating and higher possible upside, analysts clearly believe Powerfleet is more favorable than its rivals.

Valuation & Earnings

This table compares Powerfleet and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Powerfleet	$133.74 million	-$5.68 million	-15.74
Powerfleet Competitors	$382.47 million	-$78.03 million	14.19

Powerfleet’s rivals have higher revenue, but lower earnings than Powerfleet. Powerfleet is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

73.4% of Powerfleet shares are held by institutional investors. Comparatively, 36.1% of shares of all “Communications equipment, not elsewhere classified” companies are held by institutional investors. 3.8% of Powerfleet shares are held by insiders. Comparatively, 13.8% of shares of all “Communications equipment, not elsewhere classified” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Powerfleet and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Powerfleet	-3.86%	-6.61%	-2.36%
Powerfleet Competitors	-28.13%	-229.40%	-6.29%

Volatility & Risk

Powerfleet has a beta of 1.69, indicating that its share price is 69% more volatile than the S&P 500. Comparatively, Powerfleet’s rivals have a beta of -7.02, indicating that their average share price is 802% less volatile than the S&P 500.

Summary

Powerfleet beats its rivals on 9 of the 13 factors compared.

About Powerfleet

PowerFleet, Inc. provides wireless Internet-of-Things asset management solutions in the United States, Israel, and internationally. The company offers real-time intelligence for organizations to capture IoT data from various types of assets with devices and sensors to increase efficiencies, and improve safety and security, as well as increase their profitability in easy-to-understand reports, dashboards, and real-time alerts; and application programming interfaces for additional integrations and development to boost other enterprise management systems and third-party applications. It also provides hosting, maintenance, and support and consulting services; and Software as a Service, including system monitoring, help desk technical support, escalation procedure development, routine diagnostic data analysis, and software updates services. The company offers its products under the PowerFleet, Pointer, and Cellocator brands. It sells its products to commercial and government sectors in manufacturing, automotive manufacturing, wholesale and retail, food and grocery distribution, pharmaceutical and medical distribution, construction, mining, utilities, heavy industry, aerospace and defense, homeland security, and vehicle rental, logistics, shipping, and freight transportation markets, as well as through indirect sales channels, such as original equipment manufacturers, vehicle importers, distributors, and industrial equipment dealers. The company was formerly known as I.D. Systems, Inc. PowerFleet, Inc. was incorporated in 1993 and is headquartered in Woodcliff Lake, New Jersey.