Critical Survey: Freightos (NASDAQ:CRGO) and ETS (NASDAQ:ETS)

ETS (NASDAQ:ETS) and Freightos (NASDAQ:CRGO) are both small-cap industrials companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Valuation and Earnings

This table compares ETS and Freightos”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ETS	$2.67 million	5.20	-$2.19 million	($0.16)	-5.19
Freightos	$29.46 million	2.23	-$17.52 million	($0.33)	-3.88

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

Institutional and Insider Ownership

22.7% of Freightos shares are held by institutional investors. 24.9% of ETS shares are held by company insiders. Comparatively, 19.6% of Freightos shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares ETS and Freightos’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ETS	-157.04%	-30.26%	-29.59%
Freightos	-56.24%	-41.63%	-27.70%

Analyst Recommendations

This is a summary of current ratings and target prices for ETS and Freightos, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ETS	1	0	0	0	1.00
Freightos	1	0	1	0	2.00

Freightos has a consensus target price of $3.00, suggesting a potential upside of 134.38%. Given Freightos’ stronger consensus rating and higher possible upside, analysts plainly believe Freightos is more favorable than ETS.

Summary

Freightos beats ETS on 8 of the 13 factors compared between the two stocks.

About ETS

Elite Express Holding Inc. is a holding company which conducts its operations through its wholly owned subsidiary, JAR Transportation Inc. It provides last-mile delivery services, primarily focused on transporting packages from distribution centers to end customers. Elite Express Holding Inc. is based in LAGUNA HILLS, Calif.

About Freightos

Freightos Limited, together with its subsidiaries, operates a vendor-neutral booking and payment platform for international freight. It operates WebCargo, a platform for connecting carriers and forwarders; and Freightos.com, a platform for connecting service providers to importers/exporters. The company also offers software-as-a-service solutions, such as WebCargo Air for airline rates and ebookings; WebCargo AcceleRate, a multi-modal rate repository; data services; and WebCargo Airline Control Panel that enables airlines to control bookings and optimize pricing with real-time booking analytics. In addition, it provides digital customs brokerage services. The company is based in Jerusalem, Israel.