Financial Contrast: MiX Telematics (NYSE:MIXT) and Xperi (NASDAQ:XPER)

Xperi (NASDAQ:XPER) and MiX Telematics (NYSE:MIXT) are both small-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Xperi and MiX Telematics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xperi	0	0	2	0	3.00
MiX Telematics	0	0	0	0	0.00

Xperi presently has a consensus price target of $11.00, suggesting a potential upside of 83.95%. Given Xperi’s stronger consensus rating and higher probable upside, equities analysts clearly believe Xperi is more favorable than MiX Telematics.

Earnings & Valuation

This table compares Xperi and MiX Telematics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xperi	$453.96 million	0.61	-$136.61 million	$0.16	37.38
MiX Telematics	$150.06 million	2.36	$4.52 million	$0.25	58.20

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

Profitability

This table compares Xperi and MiX Telematics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xperi	-16.72%	-7.03%	-4.14%
MiX Telematics	3.72%	8.45%	5.11%

Institutional and Insider Ownership

94.3% of Xperi shares are held by institutional investors. Comparatively, 45.7% of MiX Telematics shares are held by institutional investors. 2.1% of Xperi shares are held by insiders. Comparatively, 12.4% of MiX Telematics shares are held 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.

Dividends

Xperi pays an annual dividend of $0.20 per share and has a dividend yield of 3.3%. MiX Telematics pays an annual dividend of $0.18 per share and has a dividend yield of 1.2%. Xperi pays out 125.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. MiX Telematics pays out 72.0% of its earnings in the form of a dividend.

Risk and Volatility

Xperi has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, MiX Telematics has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.

Summary

MiX Telematics beats Xperi on 9 of the 16 factors compared between the two stocks.

About Xperi

Xperi Inc. operates as a consumer and entertainment technology company worldwide. It offers Pay-TV solutions, including UX solutions that allows service providers to customize elements of the interactive program guide for their customers and to upgrade the programming features and services; IPTV, a cloud-based solution that supports various services and applications, such as TV programming, broadband OTT video content, digital music, photos, and other media experiences; managed IPTV service; video metadata and services; managed IPTV Service, a customizable, cloud-enabled, and end-to-end streaming video solution that enables operators to quickly launch a branded, fully compliant, full-featured Pay-TV service; metadata libraries comprising television, sports, movies, digital-first, celebrities, books, and video games; personalized content discovery, natural language voice, and insights; and TiVo DVR subscriptions, as well as technical support service. It also provides consumer electronics solutions, such as home and mobile audio solutions, and silicon and software solutions for edge inference; connected car solutions, including HD Radio and DTS AutoStage; and Media Platform that provides Vewd middleware solutions, TiVo OS, TiVo Stream 4K, connected TVs, and connected cars that leverage the TiVo OS, as well as advertising solutions. The company was incorporated in 2019 and is headquartered in San Jose, California.

About MiX Telematics

MiX Telematics Limited, together with its subsidiaries, provides fleet and mobile asset management solutions through software-as-a-service (SaaS) delivery model. It offers MiX Fleet Manager, a commercial fleet management solution comprising MyMiX, an innovative driver engagement platform; MiX Vision, an on-road and in-vehicle video recording solution; MiX Rovi, an in-vehicle display and communications system; MiX RIBAS and DriveMate, an in-cab driving aid solution; MiX Hours of Service, which allows real-time monitoring and compliance; MiX Journey Management, an easy-to-use electronic alternative to paper-based systems; and MiX OEM Connect allows customer instant, direct integration to relevant, and powerful telematics data. The company provides MiX Asset Manager, asset tracking products including generators, light towers, storage tanks and pumps, and asset management solution for visibility of corporate assets; and Matrix, a suite of mobile asset management solutions for entry-level fleets and consumers, which offers real-time and historical vehicle tracking, and positioning, unauthorized vehicle use alerts, panic emergency response, crash alerts, driver behavior alerts, fuel tax logbooks, and vehicle maintenance notifications. In addition, it offers Beam-e, a crowdsourcing platform to locate vehicles without the expense of utilizing a traditional cellular network connection. The company delivers fleet and mobile asset management solutions as SaaS to 1,001,800 subscribers in South Africa, the Americas, the Middle East, Australia, Europe, and Brazil. MiX Telematics Limited was founded in 1996 and is headquartered in Boca Raton, Florida.