Financial Survey: Powerfleet (NASDAQ:AIOT) vs. Lumentum (NASDAQ:LITE)

Lumentum (NASDAQ:LITE) and Powerfleet (NASDAQ:AIOT) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, earnings, dividends, profitability, analyst recommendations, valuation and risk.

Analyst Ratings

This is a summary of current recommendations for Lumentum and Powerfleet, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lumentum	1	4	9	0	2.57
Powerfleet	0	0	4	0	3.00

Lumentum presently has a consensus target price of $88.07, suggesting a potential upside of 9.84%. Powerfleet has a consensus target price of $12.33, suggesting a potential upside of 50.41%. Given Powerfleet’s stronger consensus rating and higher possible upside, analysts plainly believe Powerfleet is more favorable than Lumentum.

Valuation & Earnings

This table compares Lumentum and Powerfleet”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lumentum	$1.36 billion	4.05	-$546.50 million	($7.69)	-10.43
Powerfleet	$133.59 million	8.11	-$5.68 million	N/A	N/A

Powerfleet has lower revenue, but higher earnings than Lumentum.

Institutional & Insider Ownership

94.1% of Lumentum shares are owned by institutional investors. Comparatively, 73.4% of Powerfleet shares are owned by institutional investors. 0.2% of Lumentum shares are owned by company insiders. Comparatively, 7.8% 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 will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lumentum	-36.98%	-7.00%	-1.75%
Powerfleet	N/A	N/A	N/A

Volatility & Risk

Lumentum has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Powerfleet has a beta of 1.76, indicating that its share price is 76% more volatile than the S&P 500.

Summary

Powerfleet beats Lumentum on 9 of the 12 factors compared between the two stocks.

About Lumentum

Lumentum Holdings Inc. manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The company operates through two segments: Optical Communications (OpComms) and Commercial Lasers (Lasers). The OpComms segment offers components, modules, and subsystems that enable the transmission and transport of video, audio, and data over high-capacity fiber optic cables. It offers tunable transponders, transceivers, and transmitter modules; tunable lasers, receivers, and modulators; transport products, such as reconfigurable optical add/drop multiplexers, amplifiers, and optical channel monitors, as well as components, including 980nm, multi-mode, and Raman pumps; and switches, attenuators, photodetectors, gain flattening filters, isolators, wavelength-division multiplexing filters, arrayed waveguide gratings, multiplex/de-multiplexers, and integrated passive modules. This segment also provides Super Transport Blade, which integrates optical transport functions into a single-slot blade; vertical-cavity surface-emitting lasers; directly modulated and electro-absorption modulated lasers; and laser illumination sources for 3D sensing systems. It serves customers in telecommunications, data communications, and consumer and industrial markets. The Commercial Lasers segment offers diode-pumped solid-state, fiber, diode, direct-diode, and gas lasers, such as argon-ion and helium-neon lasers for use in original equipment manufacturer applications. It serves customers in markets and applications, such as sheet metal processing, general manufacturing, biotechnology, solar cell processing, graphics and imaging, remote sensing, and precision machining. Lumentum Holdings Inc. was incorporated in 2015 and is headquartered in San Jose, California.

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.