Analyzing Inseego (NASDAQ:INSG) & Powerfleet (NASDAQ:AIOT)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Inseego	-4.58%	N/A	-8.10%
Powerfleet	N/A	N/A	N/A

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Inseego	$195.50 million	0.91	-$46.19 million	($1.80)	-6.60
Powerfleet	$133.59 million	5.89	-$5.68 million	N/A	N/A

Powerfleet has lower revenue, but higher earnings than Inseego.

Volatility and Risk

Inseego has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500. Comparatively, Powerfleet has a beta of 1.67, indicating that its stock price is 67% more volatile than the S&P 500.

Institutional and Insider Ownership

34.2% of Inseego shares are held by institutional investors. Comparatively, 73.4% of Powerfleet shares are held by institutional investors. 2.0% of Inseego shares are held by company insiders. Comparatively, 7.8% of Powerfleet shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for Inseego and Powerfleet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inseego	0	2	1	1	2.75
Powerfleet	0	0	1	0	3.00

Inseego currently has a consensus target price of $16.00, suggesting a potential upside of 34.68%. Powerfleet has a consensus target price of $10.00, suggesting a potential upside of 68.07%. Given Powerfleet’s stronger consensus rating and higher probable upside, analysts clearly believe Powerfleet is more favorable than Inseego.

Summary

Powerfleet beats Inseego on 9 of the 11 factors compared between the two stocks.

About Inseego

Inseego Corp. engages in the design and development of cloud-managed wireless wide area network (WAN) and intelligent edge solutions for businesses, consumers, and governments worldwide. The company provides 5G and 4G mobile broadband solutions, such as mobile hotspots under the MiFi brand; and 4G VoLTE products and 4G USB modems. It also offers fixed wireless access solutions, including indoor, outdoor, and industrial routers and gateways. In addition, the company provides Inseego Connect solution for device management; and 5G SD EDGE solution for secure networking enabling corporate managed mobile remote workforce. Further, it offers SaaS solutions, including telematic and asset tracking solution that provides live maps and data to improve driver safety and performance; Inseego Subscribe, a wireless subscriber management solution for carrier’s management of their government and complex enterprise customer subscriptions. The company was founded in 1996 and is based in San Diego, California.

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.