Comparing Ituran Location and Control (NASDAQ:ITRN) & Rectitude (NASDAQ:RECT)

Rectitude (NASDAQ:RECT) and Ituran Location and Control (NASDAQ:ITRN) are both small-cap industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Earnings and Valuation

This table compares Rectitude and Ituran Location and Control”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rectitude	$32.57 million	0.57	$1.66 million	N/A	N/A
Ituran Location and Control	$359.02 million	2.78	$57.97 million	$2.91	17.25

Ituran Location and Control has higher revenue and earnings than Rectitude.

Risk & Volatility

Rectitude has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500. Comparatively, Ituran Location and Control has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Insider and Institutional Ownership

94.8% of Ituran Location and Control shares are owned by institutional investors. 0.0% of Ituran Location and Control shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Rectitude and Ituran Location and Control’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rectitude	N/A	N/A	N/A
Ituran Location and Control	16.15%	27.27%	15.85%

Analyst Recommendations

This is a summary of current recommendations and price targets for Rectitude and Ituran Location and Control, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rectitude	1	0	0	0	1.00
Ituran Location and Control	0	0	3	0	3.00

Ituran Location and Control has a consensus price target of $60.67, indicating a potential upside of 20.85%. Given Ituran Location and Control’s stronger consensus rating and higher possible upside, analysts clearly believe Ituran Location and Control is more favorable than Rectitude.

Summary

Ituran Location and Control beats Rectitude on 12 of the 12 factors compared between the two stocks.

About Rectitude

Rectitude Holdings Ltd is principally involved in the provision of safety equipment, encompassing essential items such as personal protective clothing, gloves, safety footwear, personal fall arrest systems, portable fire extinguishers and traffic products. The Company also offers auxiliary products such as industrial hardware tools and electrical hardware required for construction sites. Rectitude Holdings Ltd is based in SINGAPORE.

About Ituran Location and Control

Ituran Location and Control Ltd., together with its subsidiaries, provides location based telematics services and machine-to-machine telematics products. It operates through two segments, Telematics Services and Telematics Products. The Telematics services segment offers stolen vehicle recovery and tracking services, which enables to locate, track, and recover stolen vehicles for its subscribers; fleet management services that enable corporate and individual customers to track and manage their vehicles in real time; and locator services that allow customers to protect valuable merchandise and equipment. This segment also delivers on-demand navigation guidance, information, and assistance, including the provision of traffic reports and directions, as well as information on the location of gas stations, car repair shops, post offices, hospitals, and other facilities; and Connected Car, a service platform that includes a back-office application, a telematics device installed in the vehicle, mobile apps for IOS and Android users, and interface using the car infotainment screen, as well as usage based insurance and auto financing services. This segment serves insurance companies and agents, car manufacturers, dealers and importers, cooperative sales channels, and private subscribers. The Telematics Products segment offers Base Site, a radio receiver that includes a processor and a data computation unit to collect and send data to and from transponders, and to control centers; Control Center, a center consisting of software used to collect data from various base sites, conduct location calculations, and transmit location data to various customers and law enforcement agencies; navigation and tracking devices installed in vehicles; and SMART, a portable transmitter installed in vehicles that sends a signal to the base site enabling the location of vehicles, equipment, or an individual. The company was incorporated in 1994 and is headquartered in Azor, Israel.