Head-To-Head Comparison: PowerFleet (NASDAQ:AIOT) & Bitfarms (NASDAQ:BITF)

Bitfarms (NASDAQ:BITF) and PowerFleet (NASDAQ:AIOT) are both small-cap technology companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, profitability, risk and earnings.

Profitability

This table compares Bitfarms and PowerFleet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bitfarms	-48.26%	-4.48%	-3.71%
PowerFleet	-4.16%	0.48%	0.24%

Volatility and Risk

Bitfarms has a beta of 3.77, suggesting that its share price is 277% more volatile than the S&P 500. Comparatively, PowerFleet has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500.

Insider & Institutional Ownership

20.6% of Bitfarms shares are owned by institutional investors. Comparatively, 73.4% of PowerFleet shares are owned by institutional investors. 9.5% of Bitfarms shares are owned by company insiders. Comparatively, 5.9% of PowerFleet shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Bitfarms and PowerFleet”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bitfarms	$229.28 million	5.42	-$138.65 million	($0.23)	-8.96
PowerFleet	$450.45 million	0.90	-$20.55 million	($0.14)	-21.54

PowerFleet has higher revenue and earnings than Bitfarms. PowerFleet is trading at a lower price-to-earnings ratio than Bitfarms, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and target prices for Bitfarms and PowerFleet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bitfarms	1	1	2	0	2.25
PowerFleet	1	2	3	0	2.33

Bitfarms currently has a consensus price target of $3.90, indicating a potential upside of 89.32%. PowerFleet has a consensus price target of $7.40, indicating a potential upside of 145.44%. Given PowerFleet’s stronger consensus rating and higher possible upside, analysts plainly believe PowerFleet is more favorable than Bitfarms.

Summary

PowerFleet beats Bitfarms on 10 of the 14 factors compared between the two stocks.

About Bitfarms

Bitfarms Ltd. engages in the mining of cryptocurrency coins and tokens in Canada, the United States, Paraguay, and Argentina. It owns and operates server farms that primarily validates transactions on the Bitcoin Blockchain and earning cryptocurrency from block rewards and transaction fees. The company also provides electrician services to commercial and residential customers in Quebec, Canada. It also undertakes hosting of third-party mining hardware. The company was founded in 2017 and is based in Toronto, Canada.

About PowerFleet

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.