Head-To-Head Survey: Karooooo (NASDAQ:KARO) and BILL (NYSE:BILL)

BILL (NYSE:BILL) and Karooooo (NASDAQ:KARO) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, dividends, risk, profitability and institutional ownership.

Profitability

This table compares BILL and Karooooo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BILL	-0.68%	3.74%	1.39%
Karooooo	17.59%	32.82%	18.51%

Earnings and Valuation

This table compares BILL and Karooooo”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BILL	$1.65 billion	2.57	-$11.24 million	($0.13)	-383.94
Karooooo	$314.11 million	6.37	$56.95 million	$2.09	30.97

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

Institutional & Insider Ownership

98.0% of BILL shares are held by institutional investors. 13.2% of BILL shares are held by company insiders. Comparatively, 74.7% of Karooooo shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for BILL and Karooooo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BILL	1	7	11	1	2.60
Karooooo	0	3	5	0	2.62

BILL presently has a consensus target price of $58.56, indicating a potential upside of 17.32%. Karooooo has a consensus target price of $72.80, indicating a potential upside of 12.47%. Given BILL’s higher possible upside, research analysts clearly believe BILL is more favorable than Karooooo.

Risk & Volatility

BILL has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Karooooo has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.

Summary

Karooooo beats BILL on 9 of the 15 factors compared between the two stocks.

About BILL

BILL Holdings, Inc. provides financial automation software for small and midsize businesses worldwide. The company provides software-as-a-service, cloud-based payments, and spend management products, which allow users to automate accounts payable and accounts receivable transactions, as well as enable users to connect with their suppliers and/or customers to do business, eliminate expense reports, manage cash flows, and improve office efficiency. It also offers onboarding implementation support, and ongoing support and training services. In addition, the company's artificial intelligence enabled software provides connections between suppliers and clients. It serves accounting firms, financial institutions, and software companies. The company was formerly known as Bill.com Holdings, Inc. and changed its name to BILL Holdings, Inc. in February 2023. BILL Holdings, Inc. was incorporated in 2006 and is headquartered in San Jose, California.

About Karooooo

Karooooo Ltd. provides mobility software-as-a-service (SaaS) platform for connected vehicles in South Africa, rest of Africa, Europe, the Asia-Pacific, the Middle East, and the United States. The company offers Fleet Telematics, a fleet management SaaS platform that provides real-time insights; LiveVision, which offers pro-active risk management and fleet visibility; MiFleet advanced fleet administration and business intelligence that provides cost management and administration capability services; and Karooooo Logistics, a software application for management of last mile delivery and general operational logistics. It provides Cartrack Field Service, a software application for management of field and on site workers; Business Intelligence for high-level view of fleet statistics; asset tracking for tracking and tracing moveable assets; asset recovery services that assists vehicle owners and insurance companies with the recovery of vehicles and other assets; and insurance telematics that allows insurers to tailor premiums for commercial and consumer customers using analytics; Protector, a safety package for consumer vehicles; and Car Watch, a mobile application that lets users track and watch their vehicles. In addition, the company offers specialist mobility solutions that include Bike Track, a GPS-based solution for commercial motorbike fleets; Credit Management that predicts payment cycles and facilitate active credit management for asset-based vehicle finance; electronic monitoring services application that allows law enforcement agencies to monitor persons of interest; and mobility and monitoring solutions, such as Carzuka, cartrack insurance agency, and on-demand rideshare taxi application, as well as smart IoT products. It provides its solutions through direct sales force to consumers and sole proprietors, small and medium-sized businesses, large enterprises, and other connected devices. Karooooo Ltd. was founded in 2001 and is headquartered in Singapore.