Cadre (NYSE:CDRE) and Ituran Location and Control (NASDAQ:ITRN) Financial Contrast

Cadre (NYSE:CDRE) and Ituran Location and Control (NASDAQ:ITRN) are both small-cap industrials companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.

Earnings & Valuation

This table compares Cadre and Ituran Location and Control”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cadre	$610.31 million	2.04	$44.14 million	$1.07	27.19
Ituran Location and Control	$359.02 million	3.10	$57.97 million	$2.91	19.26

Ituran Location and Control has lower revenue, but higher earnings than Cadre. Ituran Location and Control is trading at a lower price-to-earnings ratio than Cadre, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Cadre and Ituran Location and Control, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cadre	1	1	4	1	2.71
Ituran Location and Control	0	0	3	0	3.00

Cadre presently has a consensus price target of $43.00, suggesting a potential upside of 47.78%. Ituran Location and Control has a consensus price target of $60.67, suggesting a potential upside of 8.26%. Given Cadre’s higher possible upside, analysts plainly believe Cadre is more favorable than Ituran Location and Control.

Dividends

Cadre pays an annual dividend of $0.40 per share and has a dividend yield of 1.4%. Ituran Location and Control pays an annual dividend of $6.00 per share and has a dividend yield of 10.7%. Cadre pays out 37.4% of its earnings in the form of a dividend. Ituran Location and Control pays out 206.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cadre has increased its dividend for 2 consecutive years and Ituran Location and Control has increased its dividend for 4 consecutive years. Ituran Location and Control is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Cadre and Ituran Location and Control’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cadre	7.23%	13.50%	5.86%
Ituran Location and Control	16.15%	27.27%	15.85%

Volatility & Risk

Cadre has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500. Comparatively, Ituran Location and Control has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500.

Institutional & Insider Ownership

44.0% of Cadre shares are owned by institutional investors. Comparatively, 94.8% of Ituran Location and Control shares are owned by institutional investors. 31.5% of Cadre shares are owned by company insiders. Comparatively, 0.0% of Ituran Location and Control shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Ituran Location and Control beats Cadre on 10 of the 18 factors compared between the two stocks.

About Cadre

Cadre Holdings, Inc. manufactures and distributes safety that provides protection to users in hazardous or life-threatening situations in the United States and internationally. The company operates in two segments, Products and Distribution. It offers body armor product, such as concealable, corrections, and tactical armor under the Safariland and Protech Tactical brand names; survival suits, remotely operated vehicles, specialty tools, blast sensors, accessories, and vehicle blast attenuation seats for bomb safety technicians; bomb suits; duty gear, including belts and accessories; and other protective equipment comprising communications gear, forensic and investigation products, firearms cleaning solutions, and crowd control products. The company also offers third-party products, such as uniforms, optics, boots, firearms, and ammunition. It serves first responders, such as state and local law enforcement, fire and rescue, explosive ordnance disposal technicians, emergency medical technicians, fishing, and wildlife enforcement and departments of corrections, as well as federal agencies including the U.S. Department of State, U.S. Department of Defense, U.S. Department of Interior, U.S. Department of Justice, U.S. Department of Homeland Security, U.S. Department of Corrections, the Department of Energy, Los Alamos National Laboratories, Waste Isolation Plant, and various foreign government agencies. Cadre Holdings, Inc. was founded in 1964 and is headquartered in Jacksonville, Florida.

About Ituran Location and Control

Ituran Location and Control Ltd., together with its subsidiaries, provides location based telematics services and machine-to-machine telematics products. It operates through two segments, Telematics Services and Telematics Products. The Telematics services segment offers stolen vehicle recovery and tracking services, which enables to locate, track, and recover stolen vehicles for its subscribers; fleet management services that enable corporate and individual customers to track and manage their vehicles in real time; and locator services that allow customers to protect valuable merchandise and equipment. This segment also delivers on-demand navigation guidance, information, and assistance, including the provision of traffic reports and directions, as well as information on the location of gas stations, car repair shops, post offices, hospitals, and other facilities; and Connected Car, a service platform that includes a back-office application, a telematics device installed in the vehicle, mobile apps for IOS and Android users, and interface using the car infotainment screen, as well as usage based insurance and auto financing services. This segment serves insurance companies and agents, car manufacturers, dealers and importers, cooperative sales channels, and private subscribers. The Telematics Products segment offers Base Site, a radio receiver that includes a processor and a data computation unit to collect and send data to and from transponders, and to control centers; Control Center, a center consisting of software used to collect data from various base sites, conduct location calculations, and transmit location data to various customers and law enforcement agencies; navigation and tracking devices installed in vehicles; and SMART, a portable transmitter installed in vehicles that sends a signal to the base site enabling the location of vehicles, equipment, or an individual. The company was incorporated in 1994 and is headquartered in Azor, Israel.