Financial Analysis: AAC TECHNOLOGIE/ADR (OTCMKTS:AACAY) vs. PowerFleet (OTCMKTS:PWFL)

AAC TECHNOLOGIE/ADR (OTCMKTS:AACAY) and PowerFleet (NASDAQ:PWFL) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their institutional ownership, earnings, profitability, analyst recommendations, dividends, valuation and risk.

Earnings & Valuation

This table compares AAC TECHNOLOGIE/ADR and PowerFleet’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AAC TECHNOLOGIE/ADR $2.62 billion 2.67 $573.56 million $0.45 12.76
PowerFleet $53.06 million 2.08 -$5.81 million ($0.22) -27.23

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

Volatility and Risk

AAC TECHNOLOGIE/ADR has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, PowerFleet has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500.

Dividends

AAC TECHNOLOGIE/ADR pays an annual dividend of $0.08 per share and has a dividend yield of 1.4%. PowerFleet does not pay a dividend. AAC TECHNOLOGIE/ADR pays out 17.8% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings for AAC TECHNOLOGIE/ADR and PowerFleet, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AAC TECHNOLOGIE/ADR 0 3 0 0 2.00
PowerFleet 0 0 1 0 3.00

PowerFleet has a consensus target price of $12.00, indicating a potential upside of 100.33%. Given PowerFleet’s stronger consensus rating and higher possible upside, analysts plainly believe PowerFleet is more favorable than AAC TECHNOLOGIE/ADR.

Profitability

This table compares AAC TECHNOLOGIE/ADR and PowerFleet’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AAC TECHNOLOGIE/ADR 16.10% 22.06% 13.96%
PowerFleet -15.49% -13.05% -6.64%

Institutional and Insider Ownership

0.1% of AAC TECHNOLOGIE/ADR shares are owned by institutional investors. Comparatively, 60.2% of PowerFleet shares are owned by institutional investors. 8.6% of PowerFleet shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

AAC TECHNOLOGIE/ADR beats PowerFleet on 9 of the 16 factors compared between the two stocks.

About AAC TECHNOLOGIE/ADR

AAC Technologies Holdings Inc., an investment holding company, provides miniaturized technology components to the consumer electronics industry worldwide. The company operates through Dynamic Components, electromagnetic drives and precision components, Micro Electro-Mechanical System Components, and Other Products segments. It researches, develops, manufactures, and sells acoustic products, electronic components, tooling and precision components, and electronics related accessories and components; and offers electroplating services. Its products include miniature speaker modules, receivers, and speakers; optics, RF antennas traditional microphones, and headsets; and LDS antenna. The company's products are used in smartphones. The company was formerly known as AAC Acoustic Technologies Holdings Inc. and changed its name to AAC Technologies Holdings Inc. in May 2011. AAC Technologies Holdings Inc. was founded in 1993 and is headquartered in Shenzhen, China.

About PowerFleet

There is no company description available for PowerFleet Inc.

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