Weave Communications (NYSE:WEAV) vs. Karooooo (NASDAQ:KARO) Critical Analysis

Karooooo (NASDAQ:KARO) and Weave Communications (NYSE:WEAV) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, dividends, valuation, profitability and analyst recommendations.

Volatility and Risk

Karooooo has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Weave Communications has a beta of 2.09, suggesting that its share price is 109% more volatile than the S&P 500.

Insider and Institutional Ownership

86.8% of Weave Communications shares are held by institutional investors. 74.7% of Karooooo shares are held by insiders. Comparatively, 36.3% of Weave Communications shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Karooooo and Weave Communications, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Karooooo	0	0	2	0	3.00
Weave Communications	0	0	2	1	3.33

Karooooo presently has a consensus target price of $33.00, indicating a potential downside of 13.41%. Weave Communications has a consensus target price of $16.33, indicating a potential upside of 54.23%. Given Weave Communications’ stronger consensus rating and higher probable upside, analysts plainly believe Weave Communications is more favorable than Karooooo.

Profitability

This table compares Karooooo and Weave Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Karooooo	18.70%	27.88%	19.13%
Weave Communications	-16.01%	-28.57%	-10.92%

Valuation and Earnings

This table compares Karooooo and Weave Communications”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Karooooo	$225.29 million	N/A	$39.57 million	$1.27	30.01
Weave Communications	$170.47 million	4.46	-$31.03 million	($0.43)	-24.63

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

Summary

Karooooo beats Weave Communications on 8 of the 13 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 Weave Communications

Weave Communications, Inc. provides a customer experience and payments software platform in the United States and Canada. Its platform enables small and medium-sized healthcare businesses to maximize the value of their patient interactions and minimize the time and effort spent on manual or mundane tasks. The company's products include Unified Phone Number; Customized Phone System, a smarter phone system to identify whether incoming calls are from new or current patients, provide information at every call, and manages heavy call times; Softphones to make and receive calls from anywhere with an internet connection; Text Messaging to communicate with patients; Missed Call Text to take action in real time upon notification of a missed call; Missed Text Auto-Reply; Team Chat, a group messaging solution that helps practitioners and their staff communicate with each other from their work stations; and Weave Mobile App; It also offers Weave Reviews and Respond Assistant to request, collect, monitor, and respond to reviews; Weave Email Marketing and Email Assistant; Text Connect to interact with their existing and potential patients online directly through their websites; Weave Payments, a payment processing solution; Practice Analytics provides real-time data on patient retention, appointment scheduling, treatment acceptance rates, and revenue generation; and Call Intelligence. In addition, the company provides Digital Forms to collect patient information; Insurance Verification that provides patient insurance plan details; and Scheduling to send automatic scheduling reminders through text message. It serves customers in dental, optometry, veterinary, medical, plastic surgery, physical therapy, medical spa, and other medical specialty industries. The company was formerly known as Recall Solutions, LLC and changed its name to Weave Communications, Inc. in October 2015. Weave Communications, Inc. was founded in 2008 and is headquartered in Lehi, Utah.