Karooooo (NASDAQ:KARO – Get Free Report) and Radcom (NASDAQ:RDCM – Get Free Report) are both small-cap technology companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.
Profitability
This table compares Karooooo and Radcom’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Karooooo | 17.74% | 32.03% | 19.06% |
| Radcom | 10.47% | 6.51% | 5.17% |
Analyst Ratings
This is a breakdown of current recommendations for Karooooo and Radcom, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Karooooo | 0 | 2 | 5 | 0 | 2.71 |
| Radcom | 1 | 1 | 1 | 0 | 2.00 |
Earnings and Valuation
This table compares Karooooo and Radcom”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Karooooo | $314.11 million | 6.06 | $56.95 million | $1.97 | 31.28 |
| Radcom | $71.49 million | 2.43 | $11.99 million | $0.42 | 24.67 |
Karooooo has higher revenue and earnings than Radcom. Radcom is trading at a lower price-to-earnings ratio than Karooooo, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
48.3% of Radcom shares are held by institutional investors. 74.7% of Karooooo shares are held by company insiders. Comparatively, 69.0% of Radcom shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Karooooo has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Radcom has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500.
Summary
Karooooo beats Radcom on 12 of the 14 factors compared between the two stocks.
About Karooooo
Karooooo Ltd. provides mobility software-as-a-service (SaaS) platform for connected vehicles in South Africa, rest of Africa, Europe, the Asia-Pacific, the Middle East, and the United States. The company offers Fleet Telematics, a fleet management SaaS platform that provides real-time insights; LiveVision, which offers pro-active risk management and fleet visibility; MiFleet advanced fleet administration and business intelligence that provides cost management and administration capability services; and Karooooo Logistics, a software application for management of last mile delivery and general operational logistics. It provides Cartrack Field Service, a software application for management of field and on site workers; Business Intelligence for high-level view of fleet statistics; asset tracking for tracking and tracing moveable assets; asset recovery services that assists vehicle owners and insurance companies with the recovery of vehicles and other assets; and insurance telematics that allows insurers to tailor premiums for commercial and consumer customers using analytics; Protector, a safety package for consumer vehicles; and Car Watch, a mobile application that lets users track and watch their vehicles. In addition, the company offers specialist mobility solutions that include Bike Track, a GPS-based solution for commercial motorbike fleets; Credit Management that predicts payment cycles and facilitate active credit management for asset-based vehicle finance; electronic monitoring services application that allows law enforcement agencies to monitor persons of interest; and mobility and monitoring solutions, such as Carzuka, cartrack insurance agency, and on-demand rideshare taxi application, as well as smart IoT products. It provides its solutions through direct sales force to consumers and sole proprietors, small and medium-sized businesses, large enterprises, and other connected devices. Karooooo Ltd. was founded in 2001 and is headquartered in Singapore.
About Radcom
RADCOM Ltd. provides 5G ready cloud-native, network intelligence, and service assurance solutions for telecom operators or communication service providers (CSPs). It offers RADCOM ACE, including RADCOM Service Assurance, a cloud-native, 5G-ready, and virtualized service assurance solutions, which allows telecom operators to gain end-to-end network visibility and customer experience insights across all networks; RADCOM Network Visibility, a cloud-native network packet broker and filtering solution that allows CSPs to manage network traffic at scale across multiple cloud environments, and control the visibility layer to perform analysis of select datasets; and RADCOM Network Insights, a business intelligence solution that offers insights for multiple use cases enabled by data captured and correlated through RADCOM Network Visibility and RADCOM Service Assurance. The company also provides solutions for mobile and fixed networks, such as 5G, long term evolution (LTE), voice over LTE, voice over Wifi, IP multimedia subsystem, voice over IP, and universal mobile telecommunication service. It sells its products directly to customers through executives and sales representatives, as well as through a network of distributors and resellers in North America, Asia Pacific, Latin America, Europe, the Middle East, Africa, and Israel. The company was formerly known as Big Blue Catalogue Ltd. and changed its name to RADCOM Ltd. in 1989. RADCOM Ltd. was incorporated in 1985 and is headquartered in Tel Aviv, Israel.
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