PowerFleet (NASDAQ:AIOT – Get Free Report) and eGain (NASDAQ:EGAN – Get Free Report) are both small-cap technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, analyst recommendations, valuation and dividends.
Institutional and Insider Ownership
73.4% of PowerFleet shares are held by institutional investors. Comparatively, 53.9% of eGain shares are held by institutional investors. 5.9% of PowerFleet shares are held by company insiders. Comparatively, 41.1% of eGain shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
This table compares PowerFleet and eGain’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% |
| eGain | 9.74% | 11.75% | 7.06% |
Analyst Recommendations
This is a summary of current ratings for PowerFleet and eGain, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PowerFleet | 1 | 2 | 3 | 0 | 2.33 |
| eGain | 0 | 3 | 0 | 0 | 2.00 |
PowerFleet presently has a consensus price target of $7.40, indicating a potential upside of 185.71%. eGain has a consensus price target of $6.50, indicating a potential upside of 10.17%. Given PowerFleet’s stronger consensus rating and higher possible upside, equities research analysts clearly believe PowerFleet is more favorable than eGain.
Valuation & Earnings
This table compares PowerFleet and eGain”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PowerFleet | $450.45 million | 0.77 | -$20.55 million | ($0.14) | -18.50 |
| eGain | $91.14 million | 1.64 | $8.88 million | $0.32 | 18.44 |
eGain has lower revenue, but higher earnings than PowerFleet. PowerFleet is trading at a lower price-to-earnings ratio than eGain, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
PowerFleet has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500. Comparatively, eGain has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500.
Summary
eGain beats PowerFleet on 8 of the 14 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 eGain
eGain Corporation develops, licenses, implements, and supports customer service infrastructure software solutions in North America, Europe, the Middle East, Africa, and the Asia Pacific. It provides eGain Knowledge Hub, which helps businesses to centralize knowledge, policies, procedures, situational expertise, best-practices, while delivering guided, and personalized solutions to customers and agents; eGain Conversation Hub for digital-first, omnichannel interaction management within a modern, purpose-built desktop; and eGain Analytics Hub enables clients to measure, manage, and optimize omnichannel service operations and knowledge. The company also offers subscription services that provides customers with access to its software on a cloud-based platform; and professional services, such as consulting and implementation, training, and managed services. It serves customers in various industry sectors, including the financial services, telecommunications, retail, government, healthcare, and utilities. The company was incorporated in 1997 and is headquartered in Sunnyvale, California.
Receive News & Ratings for PowerFleet Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for PowerFleet and related companies with MarketBeat.com's FREE daily email newsletter.
