Financial Review: PowerFleet (NASDAQ:AIOT) & Bitfarms (NASDAQ:BITF)

Bitfarms (NASDAQ:BITF) and PowerFleet (NASDAQ:AIOT) are both small-cap technology companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, dividends and risk.

Risk & Volatility

Bitfarms has a beta of 3.77, indicating that its stock price is 277% more volatile than the S&P 500. Comparatively, PowerFleet has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bitfarms	-48.26%	-4.48%	-3.71%
PowerFleet	-4.16%	0.48%	0.24%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bitfarms	$229.28 million	5.71	-$138.65 million	($0.23)	-9.43
PowerFleet	$443.78 million	0.79	-$20.55 million	($0.14)	-18.57

PowerFleet has higher revenue and earnings than Bitfarms. PowerFleet is trading at a lower price-to-earnings ratio than Bitfarms, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

20.6% of Bitfarms shares are owned by institutional investors. Comparatively, 73.4% of PowerFleet shares are owned by institutional investors. 9.5% of Bitfarms shares are owned by company insiders. Comparatively, 5.9% of PowerFleet shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bitfarms	1	1	2	0	2.25
PowerFleet	1	2	3	0	2.33

Bitfarms currently has a consensus price target of $3.90, indicating a potential upside of 79.72%. PowerFleet has a consensus price target of $7.40, indicating a potential upside of 184.62%. Given PowerFleet’s stronger consensus rating and higher possible upside, analysts clearly believe PowerFleet is more favorable than Bitfarms.

Summary

PowerFleet beats Bitfarms on 11 of the 14 factors compared between the two stocks.

About Bitfarms

Bitfarms Ltd. engages in the mining of cryptocurrency coins and tokens in Canada, the United States, Paraguay, and Argentina. It owns and operates server farms that primarily validates transactions on the Bitcoin Blockchain and earning cryptocurrency from block rewards and transaction fees. The company also provides electrician services to commercial and residential customers in Quebec, Canada. It also undertakes hosting of third-party mining hardware. The company was founded in 2017 and is based in Toronto, Canada.

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.