Head to Head Survey: PowerFleet (NASDAQ:AIOT) versus SAP (NYSE:SAP)

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

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	-4.69%	2.36%	1.18%
SAP	20.87%	17.49%	10.77%

Analyst Ratings

This is a summary of current ratings and target prices for PowerFleet and SAP, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PowerFleet	1	2	2	0	2.20
SAP	1	7	15	1	2.67

PowerFleet presently has a consensus price target of $7.40, indicating a potential upside of 199.60%. SAP has a consensus price target of $258.38, indicating a potential upside of 10.27%. Given PowerFleet’s higher probable upside, equities research analysts plainly believe PowerFleet is more favorable than SAP.

Earnings and Valuation

This table compares PowerFleet and SAP”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PowerFleet	$443.78 million	0.75	-$20.55 million	($0.16)	-15.44
SAP	$41.63 billion	6.92	$8.10 billion	$8.19	28.61

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.

Insider & Institutional Ownership

73.4% of PowerFleet shares are held by institutional investors. 5.9% of PowerFleet shares are held by insiders. Comparatively, 7.3% of SAP 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.

Risk and 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.

Summary

SAP beats PowerFleet on 11 of the 15 factors compared between the two stocks.

About PowerFleet

PowerFleet, Inc. provides software-as-a-service and Internet of Things solutions that help businesses monitor and manage vehicles, equipment, cargo and other mobile assets. Its platforms use connected devices and data analytics to provide visibility into asset location, utilization, condition and performance. Its offerings include fleet management and vehicle telematics, asset tracking, driver and safety tools, and solutions for managing equipment in warehouses and other industrial settings. These services are designed to help customers improve operational efficiency, safety and asset control.

About SAP

SAP SE is a German enterprise software company headquartered in Walldorf. Founded in 1972, it develops software that helps organizations manage business operations and use data across their operations. Its products and services include enterprise resource planning (ERP) software, cloud applications, database and analytics tools, and solutions for areas such as finance, supply chain management, human resources, procurement, and customer experience. SAP serves businesses and public-sector organizations across the globe.