Reviewing PowerFleet (NASDAQ:PWFL) & Rekor Systems (NASDAQ:REKR)

PowerFleet (NASDAQ:PWFL) and Rekor Systems (NASDAQ:REKR) are both small-cap transportation companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.

Risk and Volatility

PowerFleet has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500. Comparatively, Rekor Systems has a beta of 2.09, meaning that its share price is 109% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for PowerFleet and Rekor Systems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PowerFleet 0 0 2 0 3.00
Rekor Systems 0 0 0 0 N/A

PowerFleet presently has a consensus price target of $12.00, suggesting a potential upside of 102.70%. Given PowerFleet’s higher probable upside, equities research analysts plainly believe PowerFleet is more favorable than Rekor Systems.

Valuation & Earnings

This table compares PowerFleet and Rekor Systems’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PowerFleet $53.06 million 3.31 -$5.81 million ($0.22) -26.91
Rekor Systems $48.56 million 1.10 -$5.70 million N/A N/A

Rekor Systems has lower revenue, but higher earnings than PowerFleet.

Insider and Institutional Ownership

64.1% of PowerFleet shares are held by institutional investors. Comparatively, 2.8% of Rekor Systems shares are held by institutional investors. 8.6% of PowerFleet shares are held by insiders. Comparatively, 51.8% of Rekor Systems shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares PowerFleet and Rekor Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PowerFleet -16.63% -11.60% -5.55%
Rekor Systems -28.08% -1,025.73% -45.94%

Summary

PowerFleet beats Rekor Systems on 8 of the 11 factors compared between the two stocks.

PowerFleet Company Profile

There is no company description available for PowerFleet Inc.

Rekor Systems Company Profile

Rekor Systems, Inc., through its subsidiary, Rekor Recognition Systems, Inc., provides artificial intelligence and machine-learning enabled automated license plate recognition (ALPR) systems. Its ALPR systems are powered by OpenALPR software to enhance the accuracy of license plate reads to industry-leading levels, as well as to identify the make, model, and color of vehicles. The company's solutions include mobile license plate recognition (LPR) systems, fixed LPR systems, Move Over law enforcement, school bus stop-arm enforcement, red light and speed enforcement, parking enforcement, and citation management. Its products are used for law enforcement, security and surveillance, electronic toll collection, parking operations, banking and insurance, logistics, traffic management, and customer loyalty applications. The company was formerly known as Novume Solutions, Inc. and changed its name to Rekor Systems, Inc. in April 2019. Rekor Systems, Inc. was founded in 2017 and is based in Columbia, Maryland.

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