Critical Survey: TruGolf (NASDAQ:TRUG) and Fitell (NASDAQ:FTEL)

Fitell (NASDAQ:FTEL) and TruGolf (NASDAQ:TRUG) are both small-cap industrial products companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, profitability, institutional ownership, dividends, valuation and risk.

Volatility & Risk

Fitell has a beta of 7.87, indicating that its stock price is 687% more volatile than the S&P 500. Comparatively, TruGolf has a beta of -0.89, indicating that its stock price is 189% less volatile than the S&P 500.

Profitability

This table compares Fitell and TruGolf’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fitell	N/A	N/A	N/A
TruGolf	N/A	N/A	-21.06%

Insider & Institutional Ownership

0.1% of Fitell shares are owned by institutional investors. Comparatively, 3.2% of TruGolf shares are owned by institutional investors. 37.2% of TruGolf shares are owned by 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.

Earnings and Valuation

This table compares Fitell and TruGolf”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fitell	$4.47 million	28.27	-$9.31 million	N/A	N/A
TruGolf	N/A	N/A	-$360,000.00	($0.42)	-1.00

TruGolf has lower revenue, but higher earnings than Fitell.

Analyst Ratings

This is a breakdown of recent ratings for Fitell and TruGolf, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fitell	0	0	0	0	0.00
TruGolf	0	0	1	0	3.00

TruGolf has a consensus price target of $2.00, suggesting a potential upside of 374.95%. Given TruGolf’s stronger consensus rating and higher possible upside, analysts plainly believe TruGolf is more favorable than Fitell.

Summary

TruGolf beats Fitell on 6 of the 9 factors compared between the two stocks.

About Fitell

Fitell Corporation, together with its subsidiaries, operates as an online retailer of gym and fitness equipment for personal training studios and commercial gyms chains in Australia and Southeast Asia. The company sells fitness equipment, including home gym and commercial strength-training equipment; and cardio equipment, such as rowing machines, exercise bikes, treadmills, and other related products under the Muscle Motion, Rapid Motion, and FleetX brand names. It is also involved in the boutique fitness clubs licensing business. The company sells its products through its online website and offline business, such as phone, e-mail, and showroom sales. Fitell Corporation was founded in 2007 and is headquartered in Taren Point, Australia. Fitell Corporation is a subsidiary of SKMA Capital and Investment Ltd.

About TruGolf

TruGolf Holdings, Inc., through its subsidiary, engages in the development and sale of indoor golf simulator hardware under the TruGolf Nevada brand for residential and commercial markets in the United States. It also provides E6 Connect software for use on other companies' hardware. The company was founded in 1982 and is headquartered in Centerville, Utah.