PowerFleet (NASDAQ:AIOT – Get Free Report) and Freight Technologies (NASDAQ:FRGT – Get Free Report) are both small-cap transportation companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.
Institutional & Insider Ownership
73.4% of PowerFleet shares are held by institutional investors. Comparatively, 6.2% of Freight Technologies shares are held by institutional investors. 6.3% of PowerFleet shares are held by insiders. Comparatively, 9.0% of Freight Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares PowerFleet and Freight Technologies”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PowerFleet | $443.78 million | 1.28 | -$20.55 million | ($0.16) | -26.44 |
| Freight Technologies | $13.06 million | 0.17 | -$7.90 million | ($87.25) | -0.04 |
Freight Technologies has lower revenue, but higher earnings than PowerFleet. PowerFleet is trading at a lower price-to-earnings ratio than Freight Technologies, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations and price targets for PowerFleet and Freight Technologies, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PowerFleet | 1 | 1 | 3 | 0 | 2.40 |
| Freight Technologies | 1 | 0 | 0 | 0 | 1.00 |
PowerFleet presently has a consensus target price of $9.67, suggesting a potential upside of 128.53%. Given PowerFleet’s stronger consensus rating and higher probable upside, analysts clearly believe PowerFleet is more favorable than Freight Technologies.
Volatility and Risk
PowerFleet has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500. Comparatively, Freight Technologies has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.
Profitability
This table compares PowerFleet and Freight Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PowerFleet | -4.63% | -1.33% | -0.66% |
| Freight Technologies | -60.49% | -95.48% | -45.86% |
Summary
PowerFleet beats Freight Technologies on 11 of the 14 factors compared between the two stocks.
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.
About Freight Technologies
Freight Technologies, Inc., through its subsidiary, operates a transportation logistics technology platform for cross-border shipping in the United States and Mexico. Its Fr8App technology platform offers an online portal and a mobile application that provide third-party logistics services to companies in the freight transportation market; a transport management solution for customers to manage their own fleet; and freight brokerage support and customer services based on the platform. The company was incorporated in 2015 and is headquartered in The Woodlands, Texas.
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