Freight Technologies (NASDAQ:FRGT) versus PowerFleet (NASDAQ:AIOT) Head to Head Contrast

Freight Technologies (NASDAQ:FRGT) and PowerFleet (NASDAQ:AIOT) are both small-cap transportation companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, profitability, risk, valuation, earnings and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Freight Technologies	-60.49%	-95.48%	-45.86%
PowerFleet	-4.63%	-1.33%	-0.66%

Analyst Recommendations

This is a summary of recent ratings for Freight Technologies and PowerFleet, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freight Technologies	1	0	0	0	1.00
PowerFleet	1	1	3	0	2.40

PowerFleet has a consensus price target of $9.67, indicating a potential upside of 155.06%. Given PowerFleet’s stronger consensus rating and higher possible upside, analysts clearly believe PowerFleet is more favorable than Freight Technologies.

Insider and Institutional Ownership

6.2% of Freight Technologies shares are owned by institutional investors. Comparatively, 73.4% of PowerFleet shares are owned by institutional investors. 9.0% of Freight Technologies shares are owned by company insiders. Comparatively, 6.3% of PowerFleet shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Freight Technologies has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, PowerFleet has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freight Technologies	$13.06 million	0.14	-$7.90 million	($87.25)	-0.04
PowerFleet	$443.78 million	1.15	-$20.55 million	($0.16)	-23.69

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

Summary

PowerFleet beats Freight Technologies on 11 of the 14 factors compared between the two stocks.

About Freight Technologies

Freight Technologies, Inc., through its subsidiary, operates a transportation logistics technology platform for cross-border shipping in the United States and Mexico. Its Fr8App technology platform offers an online portal and a mobile application that provide third-party logistics services to companies in the freight transportation market; a transport management solution for customers to manage their own fleet; and freight brokerage support and customer services based on the platform. The company was incorporated in 2015 and is headquartered in The Woodlands, Texas.

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.