Contrasting eGain (NASDAQ:EGAN) and PowerFleet (NASDAQ:AIOT)

PowerFleet (NASDAQ:AIOT) and eGain (NASDAQ:EGAN) are both small-cap technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Volatility and Risk

PowerFleet has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500. Comparatively, eGain has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.

Institutional & Insider Ownership

73.4% of PowerFleet shares are owned by institutional investors. Comparatively, 53.9% of eGain shares are owned by institutional investors. 5.9% of PowerFleet shares are owned by insiders. Comparatively, 41.1% of eGain shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for PowerFleet and eGain, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PowerFleet	1	2	3	0	2.33
eGain	0	3	0	0	2.00

PowerFleet presently has a consensus price target of $7.40, indicating a potential upside of 165.23%. eGain has a consensus price target of $6.50, indicating a potential upside of 5.18%. Given PowerFleet’s stronger consensus rating and higher possible upside, research analysts clearly believe PowerFleet is more favorable than eGain.

Profitability

This table compares PowerFleet and eGain’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%
eGain	9.74%	11.75%	7.06%

Earnings and Valuation

This table compares PowerFleet and eGain”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PowerFleet	$443.78 million	0.84	-$20.55 million	($0.14)	-19.93
eGain	$91.14 million	1.72	$8.88 million	$0.28	22.07

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

Summary

eGain beats PowerFleet on 8 of the 14 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 eGain

eGain Corporation develops, licenses, implements, and supports customer service infrastructure software solutions in North America, Europe, the Middle East, Africa, and the Asia Pacific. It provides eGain Knowledge Hub, which helps businesses to centralize knowledge, policies, procedures, situational expertise, best-practices, while delivering guided, and personalized solutions to customers and agents; eGain Conversation Hub for digital-first, omnichannel interaction management within a modern, purpose-built desktop; and eGain Analytics Hub enables clients to measure, manage, and optimize omnichannel service operations and knowledge. The company also offers subscription services that provides customers with access to its software on a cloud-based platform; and professional services, such as consulting and implementation, training, and managed services. It serves customers in various industry sectors, including the financial services, telecommunications, retail, government, healthcare, and utilities. The company was incorporated in 1997 and is headquartered in Sunnyvale, California.