Financial Survey: Lumentum (NASDAQ:LITE) and Powerfleet (NASDAQ:AIOT)

Powerfleet (NASDAQ:AIOT) and Lumentum (NASDAQ:LITE) are both transportation companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.

Institutional & Insider Ownership

73.4% of Powerfleet shares are held by institutional investors. Comparatively, 94.1% of Lumentum shares are held by institutional investors. 7.8% of Powerfleet shares are held by insiders. Comparatively, 0.2% of Lumentum shares are held by 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 Powerfleet and Lumentum’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Powerfleet	N/A	N/A	N/A
Lumentum	-36.98%	-7.00%	-1.75%

Earnings and Valuation

This table compares Powerfleet and Lumentum”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Powerfleet	$133.59 million	8.42	-$5.68 million	N/A	N/A
Lumentum	$1.36 billion	4.02	-$546.50 million	($7.69)	-10.35

Powerfleet has higher earnings, but lower revenue than Lumentum.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Powerfleet and Lumentum, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Powerfleet	0	0	4	0	3.00
Lumentum	1	4	9	0	2.57

Powerfleet currently has a consensus price target of $12.33, indicating a potential upside of 44.93%. Lumentum has a consensus price target of $88.07, indicating a potential upside of 10.64%. Given Powerfleet’s stronger consensus rating and higher probable upside, equities analysts clearly believe Powerfleet is more favorable than Lumentum.

Risk and Volatility

Powerfleet has a beta of 1.76, suggesting that its stock price is 76% more volatile than the S&P 500. Comparatively, Lumentum has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.

Summary

Powerfleet beats Lumentum on 9 of the 12 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 Lumentum

Lumentum Holdings Inc. manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The company operates through two segments: Optical Communications (OpComms) and Commercial Lasers (Lasers). The OpComms segment offers components, modules, and subsystems that enable the transmission and transport of video, audio, and data over high-capacity fiber optic cables. It offers tunable transponders, transceivers, and transmitter modules; tunable lasers, receivers, and modulators; transport products, such as reconfigurable optical add/drop multiplexers, amplifiers, and optical channel monitors, as well as components, including 980nm, multi-mode, and Raman pumps; and switches, attenuators, photodetectors, gain flattening filters, isolators, wavelength-division multiplexing filters, arrayed waveguide gratings, multiplex/de-multiplexers, and integrated passive modules. This segment also provides Super Transport Blade, which integrates optical transport functions into a single-slot blade; vertical-cavity surface-emitting lasers; directly modulated and electro-absorption modulated lasers; and laser illumination sources for 3D sensing systems. It serves customers in telecommunications, data communications, and consumer and industrial markets. The Commercial Lasers segment offers diode-pumped solid-state, fiber, diode, direct-diode, and gas lasers, such as argon-ion and helium-neon lasers for use in original equipment manufacturer applications. It serves customers in markets and applications, such as sheet metal processing, general manufacturing, biotechnology, solar cell processing, graphics and imaging, remote sensing, and precision machining. Lumentum Holdings Inc. was incorporated in 2015 and is headquartered in San Jose, California.