Powerfleet (NASDAQ:AIOT – Get Free Report) and COMSovereign (NASDAQ:COMS – Get Free Report) are both small-cap transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.
Volatility and Risk
Powerfleet has a beta of 1.68, indicating that its share price is 68% more volatile than the S&P 500. Comparatively, COMSovereign has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500.
Institutional and Insider Ownership
73.4% of Powerfleet shares are held by institutional investors. Comparatively, 6.9% of COMSovereign shares are held by institutional investors. 3.8% of Powerfleet shares are held by insiders. Comparatively, 1.7% of COMSovereign shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Powerfleet | 0 | 0 | 1 | 0 | 3.00 |
| COMSovereign | 0 | 0 | 1 | 0 | 3.00 |
Powerfleet presently has a consensus target price of $10.00, indicating a potential upside of 122.22%. COMSovereign has a consensus target price of $3.00, indicating a potential upside of 42,757.14%. Given COMSovereign’s higher probable upside, analysts clearly believe COMSovereign is more favorable than Powerfleet.
Profitability
This table compares Powerfleet and COMSovereign’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Powerfleet | -3.86% | -6.61% | -2.36% |
| COMSovereign | N/A | N/A | N/A |
Earnings & Valuation
This table compares Powerfleet and COMSovereign”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Powerfleet | $133.74 million | 3.61 | -$5.68 million | ($0.31) | -14.52 |
| COMSovereign | $6.17 million | 0.00 | -$79.71 million | N/A | N/A |
Powerfleet has higher revenue and earnings than COMSovereign.
Summary
Powerfleet beats COMSovereign on 6 of the 10 factors compared between the two stocks.
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.
About COMSovereign
COMSovereign Holding Corp. provides various solutions for network operators, mobile device carriers, governmental units, and other enterprises worldwide. The company offers packet microwave solutions that transmit broadband voice, video, and data, as well as enable service providers, government agencies, enterprises, and other organizations; harmony enhanced MC; fastback intelligent backhaul radio (IBR); and in-band full-duplex technology. It also provides tethered drones and aerostats for use in intelligence, surveillance, reconnaissance, and tactical communication, as well as communication platform for national defense and security customers; and edge compute capable 4G LTE and 5G network radio. In addition, the company offers repairs, support and maintenance, drones, consulting, and warranties as well as other services. The company was formerly known as Drone Aviation Holding Corp. and changed its name to COMSovereign Holding Corp. in November 2019. COMSovereign Holding Corp. was incorporated in 2014 and is based in Tucson, Arizona.
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