Contrasting Powerfleet (NASDAQ:AIOT) & Track Group (OTCMKTS:TRCK)

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

Insider & Institutional Ownership

73.4% of Powerfleet shares are owned by institutional investors. Comparatively, 5.8% of Track Group shares are owned by institutional investors. 7.8% of Powerfleet shares are owned by insiders. Comparatively, 11.1% of Track Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Powerfleet and Track Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Powerfleet	N/A	N/A	N/A
Track Group	-11.24%	-18.41%	4.53%

Earnings and Valuation

This table compares Powerfleet and Track Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Powerfleet	$133.74 million	6.22	-$5.68 million	N/A	N/A
Track Group	$34.48 million	0.04	-$3.39 million	($0.34)	-0.33

Track Group has lower revenue, but higher earnings than Powerfleet.

Analyst Recommendations

This is a summary of current recommendations and price targets for Powerfleet and Track Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Powerfleet	0	0	1	0	3.00
Track Group	0	0	0	0	0.00

Powerfleet currently has a consensus price target of $10.00, indicating a potential upside of 58.73%. Given Powerfleet’s stronger consensus rating and higher probable upside, equities analysts plainly believe Powerfleet is more favorable than Track Group.

Volatility & Risk

Powerfleet has a beta of 1.67, suggesting that its share price is 67% more volatile than the S&P 500. Comparatively, Track Group has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.

Summary

Powerfleet beats Track Group on 9 of the 12 factors compared between the two stocks.

About Powerfleet

PowerFleet, Inc. provides wireless Internet-of-Things asset management solutions in the United States, Israel, and internationally. The company offers real-time intelligence for organizations to capture IoT data from various types of assets with devices and sensors to increase efficiencies, and improve safety and security, as well as increase their profitability in easy-to-understand reports, dashboards, and real-time alerts; and application programming interfaces for additional integrations and development to boost other enterprise management systems and third-party applications. It also provides hosting, maintenance, and support and consulting services; and Software as a Service, including system monitoring, help desk technical support, escalation procedure development, routine diagnostic data analysis, and software updates services. The company offers its products under the PowerFleet, Pointer, and Cellocator brands. It sells its products to commercial and government sectors in manufacturing, automotive manufacturing, wholesale and retail, food and grocery distribution, pharmaceutical and medical distribution, construction, mining, utilities, heavy industry, aerospace and defense, homeland security, and vehicle rental, logistics, shipping, and freight transportation markets, as well as through indirect sales channels, such as original equipment manufacturers, vehicle importers, distributors, and industrial equipment dealers. The company was formerly known as I.D. Systems, Inc. PowerFleet, Inc. was incorporated in 1993 and is headquartered in Woodcliff Lake, New Jersey.

About Track Group

Track Group, Inc., together with its subsidiaries, designs, manufactures, and markets location tracking devices in the United States, Latin America, and internationally. The company's products include ReliAlert XC4, a GPS monitoring device; and ReliAlert XC 3, which enables agencies to track offender movements and communicate directly with offenders in real-time through on-board two/three-way voice communication technology. It also provides IntelliTrack, a secure state of the art device-agnostic platform; IntelliTrack Mobile, a mobile application of the Intellitrack software is available for Android and iOS devices; TrackerPAL, a cloud-based monitoring system; TrackerPAL Mobile, a mobile application of the TrackerPAL software for Android and iOS devices; data analytics services; and BACtrack, a smartphone-based remote alcohol monitoring system. In addition, the company offers Empower smartphone application that provides victim and survivor support by creating a mobile geo-zone around a survivor of domestic abuse and communicates with the offender's tracking device; Socrates 360, a platform that offers various content and service; SecureCuff steel bands; and RF Beacon, a self-contained and short-range transmitting station that provides a radio frequency signal communicating with assigned offender GPS devices, as well as product support services. Further, the company develops and sells various related software, services, accessories, networking solutions, and monitoring applications. The company was formerly known as SecureAlert, Inc. and changed its name to Track Group, Inc. in May 2015. Track Group, Inc. was incorporated in 1995 and is headquartered in Naperville, Illinois.