MiX Telematics (NASDAQ: CA) and CA (NASDAQ:CA) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.

Valuation and Earnings

This table compares MiX Telematics and CA’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MiX Telematics $144.81 million 2.30 $13.98 million $0.58 25.47
CA $4.24 billion 4.35 $476.00 million $2.32 18.97

CA has higher revenue and earnings than MiX Telematics. CA is trading at a lower price-to-earnings ratio than MiX Telematics, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for MiX Telematics and CA, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MiX Telematics 0 0 1 1 3.50
CA 0 10 0 0 2.00

MiX Telematics presently has a consensus price target of $23.50, suggesting a potential upside of 59.11%. CA has a consensus price target of $36.86, suggesting a potential downside of 16.26%. Given MiX Telematics’ stronger consensus rating and higher possible upside, analysts clearly believe MiX Telematics is more favorable than CA.

Dividends

MiX Telematics pays an annual dividend of $0.16 per share and has a dividend yield of 1.1%. CA pays an annual dividend of $1.02 per share and has a dividend yield of 2.3%. MiX Telematics pays out 27.6% of its earnings in the form of a dividend. CA pays out 44.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. CA has raised its dividend for 2 consecutive years. CA is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

MiX Telematics has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500. Comparatively, CA has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500.

Profitability

This table compares MiX Telematics and CA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MiX Telematics 9.46% 11.83% 8.88%
CA 11.19% 15.11% 7.46%

Insider and Institutional Ownership

32.8% of MiX Telematics shares are held by institutional investors. Comparatively, 69.8% of CA shares are held by institutional investors. 0.9% of CA shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

CA beats MiX Telematics on 11 of the 18 factors compared between the two stocks.

MiX Telematics Company Profile

MiX Telematics Limited provides fleet and mobile asset management solutions through software-as-a-service delivery model. The company offers fleet solutions, including MiX Fleet Manager Premium that provides access to secure information about drivers and vehicles; MiX Fleet Manager Essential for monitoring drivers and vehicles; and MiX Asset Manager, a solution for fleet owners and managers to track and monitor vehicles. It also provides consumer solutions, including Matrix that provides vehicle tracking, telematics, and personal safety services; and Beame, a wireless device, which offers mobile asset tracking and recovery services. In addition, the company provides value added services comprising driver communication, collision prevention and reduction, satellite communication, driver identification, trailer tracking, field services management, driver engagement, fuel security, outsourced control room, and driver management solutions, as well as voice kits and keypads, and in-vehicle camera. MiX Telematics Limited has operations in Africa, the Americas, the Middle East, Australasia, Europe, and Brazil. The company was founded in 1996 and is based in Midrand, South Africa.

CA Company Profile

CA, Inc., together with its subsidiaries, develops, markets, delivers, and licenses software products and services in the United States and internationally. It operates through three segments: Mainframe Solutions, Enterprise Solutions, and Services. The Mainframe Solutions segment offers solutions for the IBM z Systems platform, which runs various mission critical business applications. Its mainframe solutions enable customers enhance economics by increasing throughput and lowering cost per transaction; increasing business agility through DevOps tooling and processes; increasing reliability and availability of operations through machine intelligence and automation solutions; and protecting enterprise data with security and compliance. The Enterprise Solutions segment provides a range of software planning, development, and management tools for mobile, cloud, and distributed computing environments. It primarily provides customers secure application development, infrastructure management, automation, and identity-centric security solutions. The Services segment offers various services, such as consulting, implementation, application management, education, and support services to commercial and government customers for implementation and adoption of its software solutions. The company serves banks, insurance companies, other financial services providers, government agencies, information technology service providers, telecommunication providers, transportation companies, manufacturers, technology companies, retailers, educational organizations, and health care institutions. It sells its products through direct sales force, as well as through various partner channels comprising resellers, service providers, system integrators, managed service providers, and technology partners. The company was formerly known as CA Technologies and changed its name to CA, Inc. in 2006. CA, Inc. was founded in 1974 and is headquartered in New York, New York.

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