Reviewing PowerFleet (NASDAQ:AIOT) & Q2 (NYSE:QTWO)

PowerFleet (NASDAQ:AIOT) and Q2 (NYSE:QTWO) are both technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.

Volatility & Risk

PowerFleet has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500. Comparatively, Q2 has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.

Profitability

This table compares PowerFleet and Q2’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PowerFleet	-4.16%	0.48%	0.24%
Q2	10.87%	17.04%	8.80%

Analyst Recommendations

This is a summary of current ratings and recommmendations for PowerFleet and Q2, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PowerFleet	2	1	3	0	2.17
Q2	0	3	8	1	2.83

PowerFleet currently has a consensus target price of $7.40, indicating a potential upside of 150.00%. Q2 has a consensus target price of $75.64, indicating a potential upside of 25.24%. Given PowerFleet’s higher possible upside, equities analysts clearly believe PowerFleet is more favorable than Q2.

Valuation and Earnings

This table compares PowerFleet and Q2″s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PowerFleet	$450.45 million	0.88	-$20.55 million	($0.14)	-21.14
Q2	$846.20 million	4.45	$52.01 million	$1.40	43.14

Q2 has higher revenue and earnings than PowerFleet. PowerFleet is trading at a lower price-to-earnings ratio than Q2, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

73.4% of PowerFleet shares are owned by institutional investors. 5.9% of PowerFleet shares are owned by insiders. Comparatively, 0.9% of Q2 shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Q2 beats PowerFleet on 11 of the 15 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 Q2

Q2 Holdings, Inc. provides cloud-based digital solutions to regional and community financial institutions in the United States. The company offers Digital Banking Platform, an end-to-end digital banking platform supports its financial institution customers in their delivery of unified digital banking services across digital channels. Its digital banking platform solutions, comprising Q2 Consumer Banking, Q2 Small Business and Commercial, Q2mobile Remote Deposit Capture, Q2 Sentinel, Q2 Patrol, Q2 SMART, Q2 Contextual Personal Financial Management, Q2 Goals, Q2 CardSwap, Q2 Gro, Q2 Innovation Studio, Q2 Biller Direct, ClickSWITCH, Sensibill, Centrix Dispute Tracking System, Centrix Payments I.Q. System, and Centrix Exact/Transaction Management System. The company also provides lending solutions, which consists precisionlender solutions, a cloud-based platform, data-driven sales enablement, relationship pricing, and portfolio management solution includes precisionlender platform, premium treasury pricing, data studio, and Andi; and Q2 Cloud Lending solutions, a cloud-based digital lending platform and end-to-end lending solution that allows financial institutions, FinTechs, and Alt-FIs to automate and digitize their lending activities, supporting digital lending applications, scoring, underwriting, servicing, and collections for multiple assets classes comprising Q2 CL portal, originate, loan, marketplace, and collections. In addition, it offers Q2 Innovation Studio, an application program interface, or API, based and software development kit, or SDK, based open technology platform; and Helix, a cloud-native, real-time core processing platform. The company was formerly known as CBG Holdings, Inc. and changed its name to Q2 Holdings, Inc. in March 2013. Q2 Holdings, Inc. was founded in 2004 and is headquartered in Austin, Texas.