Critical Comparison: George Risk Industries (OTCMKTS:RSKIA) and Powerfleet (NASDAQ:AIOT)

George Risk Industries (OTCMKTS:RSKIA) and Powerfleet (NASDAQ:AIOT) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, earnings, risk and analyst recommendations.

Earnings & Valuation

This table compares George Risk Industries and Powerfleet”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
George Risk Industries	$21.77 million	3.38	$7.56 million	$1.35	11.11
Powerfleet	$133.74 million	3.96	-$5.68 million	($0.31)	-15.90

George Risk Industries has higher earnings, but lower revenue than Powerfleet. Powerfleet is trading at a lower price-to-earnings ratio than George Risk Industries, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares George Risk Industries and Powerfleet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
George Risk Industries	34.57%	14.75%	13.21%
Powerfleet	-3.86%	-6.61%	-2.36%

Institutional & Insider Ownership

0.1% of George Risk Industries shares are owned by institutional investors. Comparatively, 73.4% of Powerfleet shares are owned by institutional investors. 59.8% of George Risk Industries shares are owned by insiders. Comparatively, 3.8% of Powerfleet shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

George Risk Industries has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500. Comparatively, Powerfleet has a beta of 1.68, meaning that its share price is 68% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for George Risk Industries and Powerfleet, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
George Risk Industries	0	0	0	0	N/A
Powerfleet	0	0	1	0	3.00

Powerfleet has a consensus target price of $10.00, suggesting a potential upside of 104.50%. Given Powerfleet’s higher possible upside, analysts clearly believe Powerfleet is more favorable than George Risk Industries.

Summary

George Risk Industries beats Powerfleet on 7 of the 13 factors compared between the two stocks.

About George Risk Industries

George Risk Industries, Inc. designs, manufactures, and sells various electronic components worldwide. The company offers computer keyboards, proximity switches, security alarm components and systems, pool access alarms, EZ Duct wire covers, water sensors, electronic switching devices, security switches, and wire and cable installation tools, as well as door and window contact switches, environmental products, liquid detection sensors, and raceway wire covers. Its products are used for residential, commercial, industrial, and government installations. The company serves security alarm distributors, alarm installers, original equipment manufacturers, and distributors of off-the-shelf keyboards. George Risk Industries, Inc. was founded in 1965 and is based in Kimball, Nebraska.

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.