Analyzing PowerFleet (AIOT) & Its Peers

PowerFleet (NASDAQ:AIOT) is one of 954 public companies in the “Software” industry, but how does it compare to its rivals? We will compare PowerFleet to related companies based on the strength of its earnings, institutional ownership, analyst recommendations, profitability, risk, dividends and valuation.

Risk and Volatility

PowerFleet has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, PowerFleet’s rivals have a beta of 1.34, suggesting that their average stock price is 34% more volatile than the S&P 500.

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	-4.16%	0.48%	0.24%
PowerFleet Competitors	-612.30%	20.88%	-8.99%

Earnings & Valuation

This table compares PowerFleet and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
PowerFleet	$450.45 million	-$20.55 million	-20.64
PowerFleet Competitors	$1.81 billion	$385.92 million	111.23

PowerFleet’s rivals have higher revenue and 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.

Analyst Recommendations

This is a summary of current ratings and target prices for PowerFleet and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PowerFleet	1	2	3	0	2.33
PowerFleet Competitors	5715	21424	44682	1492	2.57

PowerFleet presently has a consensus price target of $7.40, indicating a potential upside of 156.06%. As a group, “Software” companies have a potential upside of 27.67%. Given PowerFleet’s higher probable upside, analysts clearly believe PowerFleet is more favorable than its rivals.

Institutional and Insider Ownership

73.4% of PowerFleet shares are held by institutional investors. Comparatively, 41.9% of shares of all “Software” companies are held by institutional investors. 5.9% of PowerFleet shares are held by insiders. Comparatively, 19.8% of shares of all “Software” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

PowerFleet rivals beat PowerFleet on 8 of the 13 factors compared.

PowerFleet Company Profile

PowerFleet, Inc. engages in the provision of fleet management solutions for logistics, industrial, and vehicles. It offers wireless Internet of Things and machine to machine solutions for securing, controlling, tracking, and managing enterprise assets such as industrial trucks, tractor trailers, containers, cargo, and vehicle and truck fleets. It operates through the following geographical segments: United States, Israel, and Other. The company was founded in 1993 and is headquartered in Woodcliff Lake, NJ.