Head-To-Head Review: PowerFleet (NASDAQ:AIOT) and Armlogi (NASDAQ:BTOC)

Armlogi (NASDAQ:BTOC) and PowerFleet (NASDAQ:AIOT) are both small-cap transportation companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Risk & Volatility

Armlogi has a beta of 2.45, indicating that its stock price is 145% more volatile than the S&P 500. Comparatively, PowerFleet has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.

Insider and Institutional Ownership

73.4% of PowerFleet shares are held by institutional investors. 66.9% of Armlogi shares are held by insiders. Comparatively, 6.3% of PowerFleet shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Armlogi	-8.72%	-62.11%	-10.30%
PowerFleet	-9.70%	-9.00%	-4.48%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Armlogi and PowerFleet, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Armlogi	1	0	0	0	1.00
PowerFleet	1	1	5	0	2.57

PowerFleet has a consensus target price of $10.50, indicating a potential upside of 103.49%. Given PowerFleet’s stronger consensus rating and higher possible upside, analysts clearly believe PowerFleet is more favorable than Armlogi.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Armlogi	$190.41 million	0.16	-$15.35 million	($0.41)	-1.64
PowerFleet	$362.52 million	1.90	-$50.99 million	($0.31)	-16.65

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

Summary

PowerFleet beats Armlogi on 9 of the 13 factors compared between the two stocks.

About Armlogi

Armlogi Holding Corp. is a warehousing and logistics service provider which offers a comprehensive package of supply-chain solutions related to warehouse management and order fulfillment. Armlogi Holding Corp. is based in WALNUT, CA.

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.