Financial Review: Materialise (MTLS) and MiX Telematics (MIXT)

Materialise (NASDAQ: MTLS) and MiX Telematics (NYSE:MIXT) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.

Valuation & Earnings

This table compares Materialise and MiX Telematics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Materialise $120.67 million 5.53 -$3.34 million ($0.07) -201.54
MiX Telematics $114.82 million 2.24 $8.65 million $0.40 28.75

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

Insider & Institutional Ownership

12.0% of Materialise shares are held by institutional investors. Comparatively, 27.1% of MiX Telematics shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

MiX Telematics pays an annual dividend of $0.13 per share and has a dividend yield of 1.1%. Materialise does not pay a dividend. MiX Telematics pays out 32.5% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Materialise and MiX Telematics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Materialise 0 0 4 0 3.00
MiX Telematics 0 2 1 0 2.33

Materialise currently has a consensus price target of $15.50, suggesting a potential upside of 9.85%. MiX Telematics has a consensus price target of $15.00, suggesting a potential upside of 30.43%. Given MiX Telematics’ higher possible upside, analysts plainly believe MiX Telematics is more favorable than Materialise.

Volatility & Risk

Materialise has a beta of 1.75, meaning that its share price is 75% more volatile than the S&P 500. Comparatively, MiX Telematics has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Materialise -2.07% -3.45% -1.55%
MiX Telematics 7.73% 8.99% 6.81%

Summary

MiX Telematics beats Materialise on 8 of the 14 factors compared between the two stocks.

Materialise Company Profile

Materialise NV is a Belgium-based company engaged in the software industry. The Company is a provider of additive manufacturing software and of three dimensional (3D) printing services. Materialise NV incorporates of 3D printing experience into a range of software solution and 3D printing services, through which the Company seeks to form the backbone of the 3D printing industry. Its solutions enable players in a wide variety of industries, including healthcare, automotive, aerospace, art and design, and consumer goods, to build 3D printing applications. The Company operates in the domestic market and worldwide, including Colombia, Brazil, Australia, Malaysia, China, Japan, Austria, Poland, Germany and France, among others.

MiX Telematics Company Profile

MiX Telematics Limited is a South Africa-based provider of fleet and mobile asset management solutions delivered as Software-as-a-Service (SaaS) to customers. The Company’s operating segments include Africa, Europe, Americas, Middle East and Australasia, Brazil and Central Services Organization. The Company’s products and services provide enterprise fleets, small fleets and consumers with solutions for safety, risk management and security. The Company’s solutions include MiX Fleet Manager, which consists of an on-board computer, an online tracking and information portal, as well as access to fleet and driver reports and analytics; MiX SafeDrive provides In-Vehicle Monitoring Systems (IVMS) that monitor driver performance, identify unsafe behaviors and provide audible alerts; Matrix is focused on personal safety and consumer telematics through vehicle tracking-and-recovery products and services, and Beam-e, which is a wireless device that fits into vehicles, motorbikes or caravan.

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