SuperCom (NASDAQ:SPCB – Get Free Report) and Ituran Location and Control (NASDAQ:ITRN – Get Free Report) are both small-cap industrials companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.
Profitability
This table compares SuperCom and Ituran Location and Control’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
SuperCom | 11.00% | 37.28% | 16.17% |
Ituran Location and Control | 16.35% | 28.24% | 16.47% |
Analyst Ratings
This is a summary of recent recommendations and price targets for SuperCom and Ituran Location and Control, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
SuperCom | 1 | 0 | 1 | 0 | 2.00 |
Ituran Location and Control | 0 | 0 | 2 | 0 | 3.00 |
Volatility & Risk
SuperCom has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500. Comparatively, Ituran Location and Control has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.
Earnings and Valuation
This table compares SuperCom and Ituran Location and Control”s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
SuperCom | $27.64 million | 1.21 | $660,000.00 | $0.43 | 26.65 |
Ituran Location and Control | $339.61 million | 2.10 | $53.65 million | $2.79 | 12.87 |
Ituran Location and Control has higher revenue and earnings than SuperCom. Ituran Location and Control is trading at a lower price-to-earnings ratio than SuperCom, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
47.8% of SuperCom shares are held by institutional investors. Comparatively, 94.8% of Ituran Location and Control shares are held by institutional investors. 18.3% of SuperCom shares are held by insiders. Comparatively, 0.0% of Ituran Location and Control shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
Ituran Location and Control beats SuperCom on 9 of the 14 factors compared between the two stocks.
About SuperCom
SuperCom Ltd. provides digital identity, Internet of Things and connectivity, and cyber security products and solutions to governments, and private and public organizations worldwide. The company operates in three segments: e-Gov, IoT and Connectivity, and Cyber Security. It offers MAGNA, a platform for national ID registries, e-passports, biometric visas, automated fingerprint identification systems, digitized driver's licenses, and electronic voter registration and election management. The company also provides PureRF, a solution based on RFID tag technology to identify, locate, track, monitor, count, and protect people and objects. Its PureRF suite includes PureRF Tags, Hands-Free Long-Range RFID Asset and Vehicle Tags, PureRF Readers, PureRF Activators, PureRF Initializer, House Arrest Monitoring System, PureRF RF Bracelet, PureCom RF Base Station, GOS Offender Tracking System, PureTrack, PureBeacon, PureMonitor Offender Electronic Monitoring Software, Inmate Monitoring System, DoorGuard, and Personnel Tag. In addition, the company offers domestic violence victim protection systems. Further, it provides connectivity products and solutions comprising AVIDITY WBSac, BOLSTER WBSn, BreezeULTRA P6000, Arena controller, and BreezeNET B; cyber security strategic business unit products and solutions, which include Safend Encryptor, Safend Protector, Safend Inspector, Safend Discoverer, and SafeMobile; and wireless and RFID products include solutions for carrier Wi-Fi, enterprise connectivity, smart city, smart hospitality, connected campuses, and connected events. It sells its systems and products through local representatives, subsidiaries, and distribution channels, as well as independent representatives, resellers, and distributors. The company was formerly known as Vuance Ltd. and changed its name to SuperCom Ltd. in January 2013. SuperCom Ltd. was incorporated in 1988 and is headquartered in Tel Aviv, Israel.
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.
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