Head to Head Review: Guardforce AI (NASDAQ:GFAI) versus Ituran Location and Control (NASDAQ:ITRN)

Guardforce AI (NASDAQ:GFAI) and Ituran Location and Control (NASDAQ:ITRN) are both small-cap industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, risk, dividends, institutional ownership and profitability.

Profitability

This table compares Guardforce AI and Ituran Location and Control’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Guardforce AI	N/A	N/A	N/A
Ituran Location and Control	16.35%	28.24%	16.47%

Risk & Volatility

Guardforce AI has a beta of 2.51, suggesting that its share price is 151% more volatile than the S&P 500. Comparatively, Ituran Location and Control has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.

Valuation & Earnings

This table compares Guardforce AI and Ituran Location and Control”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Guardforce AI	$36.35 million	0.54	-$5.86 million	N/A	N/A
Ituran Location and Control	$336.26 million	2.01	$53.65 million	$2.79	12.21

Ituran Location and Control has higher revenue and earnings than Guardforce AI.

Analyst Ratings

This is a breakdown of recent ratings for Guardforce AI and Ituran Location and Control, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Guardforce AI	0	0	1	1	3.50
Ituran Location and Control	0	0	1	0	3.00

Guardforce AI presently has a consensus price target of $4.50, suggesting a potential upside of 305.41%. Ituran Location and Control has a consensus price target of $50.00, suggesting a potential upside of 46.80%. Given Guardforce AI’s stronger consensus rating and higher probable upside, analysts clearly believe Guardforce AI is more favorable than Ituran Location and Control.

Institutional and Insider Ownership

2.0% of Guardforce AI shares are owned by institutional investors. Comparatively, 94.8% of Ituran Location and Control shares are owned by institutional investors. 76.7% of Guardforce AI shares are owned by insiders. Comparatively, 0.0% of Ituran Location and Control shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Ituran Location and Control beats Guardforce AI on 7 of the 12 factors compared between the two stocks.

About Guardforce AI

Guardforce AI Co., Limited offers cash solutions and cash handling services in Thailand. The company operates through four segments: Secured Logistics Business, General Security Solutions, Robotics Solution Business, and Information Security Business. Its services include cash-in-transit, vehicles to banks, ATM management, cash center operations, cash processing, coin processing, consolidate cash center, and cheque center services, as well as cash deposit machine solutions, such as cash deposit management and express cash services. The company also sells and rents robots; and sells and installs Rapid7 software, as well as provision of integrated alarm security system installation, PCI ASV scan, and penetration testing services. Its customers include local commercial banks, chain retailers, coin manufacturing mints, and government authorities. The company was founded in 1982 and is based in Singapore.

About Ituran Location and Control

Ituran Location and Control Ltd., together with its subsidiaries, provides location based telematics services and machine-to-machine telematics products. It operates through two segments, Telematics Services and Telematics Products. The Telematics services segment offers stolen vehicle recovery and tracking services, which enables to locate, track, and recover stolen vehicles for its subscribers; fleet management services that enable corporate and individual customers to track and manage their vehicles in real time; and locator services that allow customers to protect valuable merchandise and equipment. This segment also delivers on-demand navigation guidance, information, and assistance, including the provision of traffic reports and directions, as well as information on the location of gas stations, car repair shops, post offices, hospitals, and other facilities; and Connected Car, a service platform that includes a back-office application, a telematics device installed in the vehicle, mobile apps for IOS and Android users, and interface using the car infotainment screen, as well as usage based insurance and auto financing services. This segment serves insurance companies and agents, car manufacturers, dealers and importers, cooperative sales channels, and private subscribers. The Telematics Products segment offers Base Site, a radio receiver that includes a processor and a data computation unit to collect and send data to and from transponders, and to control centers; Control Center, a center consisting of software used to collect data from various base sites, conduct location calculations, and transmit location data to various customers and law enforcement agencies; navigation and tracking devices installed in vehicles; and SMART, a portable transmitter installed in vehicles that sends a signal to the base site enabling the location of vehicles, equipment, or an individual. The company was incorporated in 1994 and is headquartered in Azor, Israel.