Powerfleet (NASDAQ:AIOT – Get Free Report) and George Risk Industries (OTCMKTS:RSKIA – Get Free Report) are both small-cap transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.
Institutional & Insider Ownership
73.4% of Powerfleet shares are held by institutional investors. Comparatively, 0.1% of George Risk Industries shares are held by institutional investors. 3.8% of Powerfleet shares are held by insiders. Comparatively, 59.8% of George Risk Industries shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Risk & Volatility
Powerfleet has a beta of 1.68, meaning that its stock price is 68% more volatile than the S&P 500. Comparatively, George Risk Industries has a beta of 0.31, meaning that its stock price is 69% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Powerfleet | 0 | 0 | 1 | 0 | 3.00 |
| George Risk Industries | 0 | 0 | 0 | 0 | N/A |
Powerfleet presently has a consensus target price of $10.00, indicating a potential upside of 104.50%. Given Powerfleet’s higher probable upside, equities analysts clearly believe Powerfleet is more favorable than George Risk Industries.
Profitability
This table compares Powerfleet and George Risk Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Powerfleet | -3.86% | -6.61% | -2.36% |
| George Risk Industries | 34.57% | 14.75% | 13.21% |
Valuation & Earnings
This table compares Powerfleet and George Risk Industries”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Powerfleet | $133.74 million | 3.96 | -$5.68 million | ($0.31) | -15.90 |
| George Risk Industries | $21.77 million | 3.38 | $7.56 million | $1.35 | 11.11 |
George Risk Industries has lower revenue, but higher earnings 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.
Summary
George Risk Industries beats Powerfleet on 7 of the 13 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 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.
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