Analyzing PowerFleet (NASDAQ:AIOT) & Firstgroup (OTCMKTS:FGROY)

Firstgroup (OTCMKTS:FGROY) and PowerFleet (NASDAQ:AIOT) are both small-cap transportation companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Firstgroup	N/A	N/A	N/A
PowerFleet	-9.70%	-9.00%	-4.48%

Risk & Volatility

Firstgroup has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500. Comparatively, PowerFleet has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500.

Institutional and Insider Ownership

73.4% of PowerFleet shares are held by institutional investors. 0.2% of Firstgroup shares are held by company insiders. Comparatively, 6.3% of PowerFleet shares are held 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.

Earnings & Valuation

This table compares Firstgroup and PowerFleet”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Firstgroup	$6.46 billion	0.21	$162.68 million	N/A	N/A
PowerFleet	$362.52 million	1.78	-$50.99 million	($0.31)	-15.58

Firstgroup has higher revenue and earnings than PowerFleet.

Analyst Recommendations

This is a summary of current ratings and price targets for Firstgroup and PowerFleet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Firstgroup	0	0	1	0	3.00
PowerFleet	1	1	5	0	2.57

PowerFleet has a consensus target price of $10.50, suggesting a potential upside of 117.39%. Given PowerFleet’s higher probable upside, analysts clearly believe PowerFleet is more favorable than Firstgroup.

About Firstgroup

FirstGroup plc provides public transport services in the United Kingdom. The company operates through First Bus and First Rail segments. The First Bus segment offers local bus services with a fleet of approximately 4,800 buses in the United Kingdom. The First Rail segment operates a passenger rail network that provides long-distance, commuter, regional, and sleeper services through a portfolio of Great Western Railway, South Western Railway, and Avanti West Coast franchises; and hull trains and Lumos. FirstGroup plc was founded in 1986 and is based in London, the United Kingdom.

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.