Reviewing Powerfleet (AIOT) and Its Peers

Powerfleet (NASDAQ:AIOT) is one of 40 public companies in the “Communications equipment, not elsewhere classified” industry, but how does it contrast to its peers? We will compare Powerfleet to related companies based on the strength of its risk, institutional ownership, dividends, analyst recommendations, earnings, valuation and profitability.

Profitability

This table compares Powerfleet and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Powerfleet	-3.86%	-6.61%	-2.36%
Powerfleet Competitors	-28.75%	-229.27%	-6.42%

Analyst Recommendations

This is a summary of current ratings for Powerfleet and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Powerfleet	0	0	0	0	N/A
Powerfleet Competitors	162	450	923	48	2.54

As a group, “Communications equipment, not elsewhere classified” companies have a potential upside of 27.01%. Given Powerfleet’s peers higher possible upside, analysts clearly believe Powerfleet has less favorable growth aspects than its peers.

Insider & Institutional Ownership

73.4% of Powerfleet shares are held by institutional investors. Comparatively, 36.1% of shares of all “Communications equipment, not elsewhere classified” companies are held by institutional investors. 3.8% of Powerfleet shares are held by company insiders. Comparatively, 13.8% of shares of all “Communications equipment, not elsewhere classified” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

Powerfleet has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500. Comparatively, Powerfleet’s peers have a beta of -7.39, meaning that their average stock price is 839% less volatile than the S&P 500.

Earnings and Valuation

This table compares Powerfleet and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Powerfleet	$133.59 million	-$5.68 million	-13.94
Powerfleet Competitors	$393.66 million	-$78.13 million	13.69

Powerfleet’s peers have higher revenue, but lower earnings than Powerfleet. Powerfleet is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Powerfleet beats its peers on 6 of the 10 factors compared.

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.