Critical Survey: Powerfleet (NASDAQ:AIOT) and Inseego (NASDAQ:INSG)

Powerfleet (NASDAQ:AIOT) and Inseego (NASDAQ:INSG) are both small-cap transportation companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Powerfleet and Inseego, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Powerfleet	0	0	1	0	3.00
Inseego	0	2	1	0	2.33

Powerfleet presently has a consensus price target of $10.00, indicating a potential upside of 65.56%. Inseego has a consensus price target of $15.67, indicating a potential upside of 27.27%. Given Powerfleet’s stronger consensus rating and higher possible upside, research analysts clearly believe Powerfleet is more favorable than Inseego.

Profitability

This table compares Powerfleet and Inseego’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Powerfleet	N/A	N/A	N/A
Inseego	-4.58%	N/A	-8.10%

Valuation & Earnings

This table compares Powerfleet and Inseego”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Powerfleet	$133.59 million	4.87	-$5.68 million	N/A	N/A
Inseego	$195.69 million	0.77	-$46.19 million	($1.80)	-6.84

Powerfleet has higher earnings, but lower revenue than Inseego.

Institutional and Insider Ownership

73.4% of Powerfleet shares are owned by institutional investors. Comparatively, 34.2% of Inseego shares are owned by institutional investors. 7.8% of Powerfleet shares are owned by insiders. Comparatively, 2.0% of Inseego shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Powerfleet has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500. Comparatively, Inseego has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500.

Summary

Powerfleet beats Inseego on 9 of the 10 factors compared between the two stocks.

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.

About Inseego

Inseego Corp. engages in the design and development of cloud-managed wireless wide area network (WAN) and intelligent edge solutions for businesses, consumers, and governments worldwide. The company provides 5G and 4G mobile broadband solutions, such as mobile hotspots under the MiFi brand; and 4G VoLTE products and 4G USB modems. It also offers fixed wireless access solutions, including indoor, outdoor, and industrial routers and gateways. In addition, the company provides Inseego Connect solution for device management; and 5G SD EDGE solution for secure networking enabling corporate managed mobile remote workforce. Further, it offers SaaS solutions, including telematic and asset tracking solution that provides live maps and data to improve driver safety and performance; Inseego Subscribe, a wireless subscriber management solution for carrier’s management of their government and complex enterprise customer subscriptions. The company was founded in 1996 and is based in San Diego, California.