Financial Analysis: PowerFleet (NASDAQ:AIOT) vs. Shengfeng Development (NASDAQ:SFWL)

PowerFleet (NASDAQ:AIOT) and Shengfeng Development (NASDAQ:SFWL) are both transportation companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, analyst recommendations, valuation, risk and dividends.

Profitability

This table compares PowerFleet and Shengfeng Development’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PowerFleet	-7.00%	-5.23%	-2.61%
Shengfeng Development	N/A	N/A	N/A

Earnings and Valuation

This table compares PowerFleet and Shengfeng Development”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PowerFleet	$362.52 million	1.24	-$50.99 million	($0.23)	-14.52
Shengfeng Development	$572.48 million	N/A	$11.93 million	N/A	N/A

Shengfeng Development has higher revenue and earnings than PowerFleet.

Risk and Volatility

PowerFleet has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, Shengfeng Development has a beta of -2.35, suggesting that its stock price is 335% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for PowerFleet and Shengfeng Development, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PowerFleet	0	2	4	0	2.67
Shengfeng Development	1	0	0	0	1.00

PowerFleet presently has a consensus price target of $10.33, suggesting a potential upside of 209.38%. Given PowerFleet’s stronger consensus rating and higher probable upside, research analysts clearly believe PowerFleet is more favorable than Shengfeng Development.

Institutional & Insider Ownership

73.4% of PowerFleet shares are held by institutional investors. Comparatively, 1.1% of Shengfeng Development shares are held by institutional investors. 6.3% of PowerFleet shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

PowerFleet beats Shengfeng Development on 6 of the 11 factors compared between the two stocks.

About PowerFleet

PowerFleet, Inc. engages in the provision of fleet management solutions for logistics, industrial, and vehicles. It offers wireless Internet of Things and machine to machine solutions for securing, controlling, tracking, and managing enterprise assets such as industrial trucks, tractor trailers, containers, cargo, and vehicle and truck fleets. It operates through the following geographical segments: United States, Israel, and Other. The company was founded in 1993 and is headquartered in Woodcliff Lake, NJ.

About Shengfeng Development

Shengfeng Development Limited, through its subsidiaries, provides contract logistics services in the People's Republic of China. The company offers business-to-business freight transportation services, such as full truckload and less than truckload; and cloud storage services, including warehouse management, order fulfillment, delivery process management, in-warehouse processing, and inventory optimization management services. It also provides value-added services comprising collection on delivery, customs declaration, delivery upstairs, packaging, pay-at-arrival, return proof of delivery, and shipment protection. The company serves clients in various industries, including manufacturing, energy, telecommunications, internet, fashion, fast moving consumer goods, publishing, agriculture, and e-commerce. Shengfeng Development Limited was founded in 2001 and is based in Fuzhou, the People's Republic of China.