Analyzing Firstgroup (OTCMKTS:FGROY) & PowerFleet (NASDAQ:AIOT)

PowerFleet (NASDAQ:AIOT) and Firstgroup (OTCMKTS:FGROY) are both small-cap transportation companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.

Institutional & Insider Ownership

73.4% of PowerFleet shares are owned by institutional investors. 6.3% of PowerFleet shares are owned by insiders. Comparatively, 0.2% of Firstgroup shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares PowerFleet and Firstgroup”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PowerFleet	$362.52 million	1.89	-$50.99 million	($0.31)	-16.52
Firstgroup	$6.46 billion	0.21	$162.68 million	N/A	N/A

Firstgroup has higher revenue and earnings than PowerFleet.

Risk and Volatility

PowerFleet has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, Firstgroup has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PowerFleet	-9.70%	-9.00%	-4.48%
Firstgroup	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent recommendations and price targets for PowerFleet and Firstgroup, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PowerFleet	1	1	5	0	2.57
Firstgroup	0	0	1	0	3.00

PowerFleet presently has a consensus target price of $10.50, suggesting a potential upside of 105.08%. Given PowerFleet’s higher possible upside, equities research analysts clearly believe PowerFleet is more favorable than Firstgroup.

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 Firstgroup

FirstGroup plc provides public transport services in the United Kingdom. The company operates through First Bus and First Rail segments. The First Bus segment offers local bus services with a fleet of approximately 4,800 buses in the United Kingdom. The First Rail segment operates a passenger rail network that provides long-distance, commuter, regional, and sleeper services through a portfolio of Great Western Railway, South Western Railway, and Avanti West Coast franchises; and hull trains and Lumos. FirstGroup plc was founded in 1986 and is based in London, the United Kingdom.