Head-To-Head Comparison: SAP (NYSE:SAP) vs. PowerFleet (NASDAQ:AIOT)

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

Insider & Institutional Ownership

73.4% of PowerFleet shares are held by institutional investors. 5.9% of PowerFleet shares are held by company insiders. Comparatively, 7.3% of SAP shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares PowerFleet and SAP’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%
SAP	20.87%	17.49%	10.77%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PowerFleet	$450.45 million	0.80	-$20.55 million	($0.14)	-19.21
SAP	$41.63 billion	6.89	$8.10 billion	$8.19	28.52

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

Risk & Volatility

PowerFleet has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500. Comparatively, SAP has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for PowerFleet and SAP, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PowerFleet	1	2	3	0	2.33
SAP	0	7	12	1	2.70

PowerFleet presently has a consensus price target of $7.40, indicating a potential upside of 175.09%. SAP has a consensus price target of $258.83, indicating a potential upside of 10.82%. Given PowerFleet’s higher probable upside, equities analysts clearly believe PowerFleet is more favorable than SAP.

Summary

SAP beats PowerFleet on 12 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 SAP

SAP SE, together with its subsidiaries, provides applications, technology, and services worldwide. It offers SAP S/4HANA that provides software capabilities for finance, risk and project management, procurement, manufacturing, supply chain and asset management, and research and development; SAP SuccessFactors solutions for human resources, including HR and payroll, talent and employee experience management, and people and workforce analytics; and spend management solutions that covers direct and indirect spend, travel and expense, and external workforce management. The company also provides SAP customer experience solutions; SAP Business Technology platform that enables customers and partners to build, integrate, and automate applications; and SAP Business Network, a business-to-business collaboration platform that helps digitalize key business processes across the supply chain and enables communication between trading partners. In addition, it offers SAP Signavio to help customers to discover, analyze, and understand their business process operations; SAP's industry cloud solutions that provides modular solutions addressing industry-specific functions; Taulia solutions for working capital management to help enable customers mitigate the effects of inflation by providing visibility into working capital and access to liquidity; and sustainability solutions and services. SAP SE was founded in 1972 and is headquartered in Walldorf, Germany.