Critical Review: Rekor Systems (NASDAQ:REKR) versus Powerfleet (NASDAQ:AIOT)

Rekor Systems (NASDAQ:REKRGet Free Report) and Powerfleet (NASDAQ:AIOTGet Free Report) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Insider & Institutional Ownership

45.7% of Rekor Systems shares are held by institutional investors. Comparatively, 73.4% of Powerfleet shares are held by institutional investors. 8.4% of Rekor Systems shares are held by company insiders. Comparatively, 3.8% of Powerfleet shares are held 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.

Earnings and Valuation

This table compares Rekor Systems and Powerfleet’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rekor Systems $42.39 million 2.50 -$45.69 million ($0.73) -1.70
Powerfleet $133.74 million 3.92 -$5.68 million ($0.31) -15.74

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

Analyst Recommendations

This is a breakdown of current recommendations for Rekor Systems and Powerfleet, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rekor Systems 0 0 2 0 3.00
Powerfleet 0 0 1 0 3.00

Powerfleet has a consensus price target of $10.00, suggesting a potential upside of 104.92%. Given Powerfleet’s higher possible upside, analysts plainly believe Powerfleet is more favorable than Rekor Systems.

Risk and Volatility

Rekor Systems has a beta of 2.01, indicating that its share price is 101% more volatile than the S&P 500. Comparatively, Powerfleet has a beta of 1.69, indicating that its share price is 69% more volatile than the S&P 500.

Profitability

This table compares Rekor Systems and Powerfleet’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rekor Systems -133.98% -118.77% -55.60%
Powerfleet -3.86% -6.61% -2.36%

Summary

Powerfleet beats Rekor Systems on 9 of the 13 factors compared between the two stocks.

About Rekor Systems

(Get Free Report)

Rekor Systems, Inc., a technology company, provides infrastructure solutions for transportation, public safety, and urban mobility markets in the United States and internationally. The company's platforms include Rekor One, an AI-powered roadway intelligence platform; Rekor Command, a comprehensive cross-agency platform that offers various applications for traffic management centers, freeway service patrol, first responders, and maintenance crews; Rekor Discover, a platform that ingests data from its hardware and automates comprehensive analytics and actionable insights about the movement of objects across the roadway; and Rekor Scout platform, which automates previously manual processes with collaborative solutions that keep all stakeholders apprised of developing situations and accelerate reaction times to incidents and offenders. It also offers Rekor AutoNotice, a cloud-based financial management application that delivers a turnkey information and citation management solution for cities, states, and municipalities for primary and secondary offenses; and Rekor CarCheck, which allows its AI based vehicle and license plate recognition technology to be accessed for a range of commercial applications. In addition, the company offers Rekor Edge Max System, a fixed traffic data collection system that captures and transforms roadway data into holistic traffic insights; Rekor Edge Pro, a vehicle recognition solution that is used on a standalone basis or integrated into a network; and Rekor Edge Flex, a portable data collection system. Further, it provides traffic services, including traditional traffic studies, which delivers data and insights for planning and management of roadway infrastructure and commercial initiatives; innovative AI-driven traffic studies for traffic management; and traffic engineering services. The company was incorporated in 2017 and is headquartered in Columbia, Maryland.

About Powerfleet

(Get Free Report)

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.

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