Contrasting PowerFleet (NASDAQ:AIOT) & DSV (OTCMKTS:DSDVY)

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

Insider and Institutional Ownership

0.2% of DSV shares are held by institutional investors. Comparatively, 73.4% of PowerFleet shares are held by institutional investors. 6.3% of PowerFleet shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for DSV and PowerFleet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DSV	0	2	3	1	2.83
PowerFleet	0	2	4	0	2.67

PowerFleet has a consensus price target of $10.33, suggesting a potential upside of 165.64%. Given PowerFleet’s higher probable upside, analysts plainly believe PowerFleet is more favorable than DSV.

Earnings & Valuation

This table compares DSV and PowerFleet”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DSV	$37.45 billion	1.70	$1.23 billion	$2.94	45.09
PowerFleet	$362.52 million	1.44	-$50.99 million	($0.23)	-16.91

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DSV	4.23%	10.92%	4.63%
PowerFleet	-7.00%	-5.23%	-2.61%

Volatility and Risk

DSV has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, PowerFleet has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500.

Summary

DSV beats PowerFleet on 10 of the 15 factors compared between the two stocks.

About DSV

DSV A/S offers transport and logistics services in Europe, the Middle East, Africa, North America, South America, Asia, Australia, and the Pacific. It operates through three segments: Air & Sea, Road, and Solutions. The company provides air freight, air freight compliance and carrier, and rail freight services; sea freight, and sea freight compliance and carrier services, as well as freight containers. It also offers road freight services, such as part and full loads, groupage, specialized transport, express, and online and document handling services; and workshops. In addition, the company provides logistics solutions for automotive, technology, healthcare, energy, industrial, retail/ fashion, and chemical sectors; and inventory management solutions. Further, it offers special project transport services, such as industrial projects, renewable energy, government logistics, ship charter, and air charter services; and courier and warehousing services. The company was formerly known as DSV Panalpina A/S and changed its name to DSV A/S in September 2021. DSV A/S was incorporated in 1976 and is based in Hedehusene, Denmark.

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.