Analyzing MiX Telematics (NYSE:MIXT) & Xperi (NASDAQ:XPER)

MiX Telematics (NYSE:MIXT) and Xperi (NASDAQ:XPER) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Valuation & Earnings

This table compares MiX Telematics and Xperi”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MiX Telematics	$150.06 million	2.36	$4.52 million	$0.25	58.20
Xperi	$453.96 million	0.61	-$136.61 million	$0.16	37.38

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

Dividends

MiX Telematics pays an annual dividend of $0.18 per share and has a dividend yield of 1.2%. Xperi pays an annual dividend of $0.20 per share and has a dividend yield of 3.3%. MiX Telematics pays out 72.0% of its earnings in the form of a dividend. Xperi pays out 125.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility & Risk

MiX Telematics has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, Xperi has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500.

Insider and Institutional Ownership

45.7% of MiX Telematics shares are held by institutional investors. Comparatively, 94.3% of Xperi shares are held by institutional investors. 12.4% of MiX Telematics shares are held by insiders. Comparatively, 2.1% of Xperi shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MiX Telematics	3.72%	8.45%	5.11%
Xperi	-16.72%	-7.03%	-4.14%

Analyst Ratings

This is a breakdown of recent recommendations for MiX Telematics and Xperi, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MiX Telematics	0	0	0	0	0.00
Xperi	0	0	2	0	3.00

Xperi has a consensus target price of $11.00, indicating a potential upside of 83.95%. Given Xperi’s stronger consensus rating and higher possible upside, analysts plainly believe Xperi is more favorable than MiX Telematics.

Summary

MiX Telematics beats Xperi on 9 of the 16 factors compared between the two stocks.

About MiX Telematics

MiX Telematics Limited, together with its subsidiaries, provides fleet and mobile asset management solutions through software-as-a-service (SaaS) delivery model. It offers MiX Fleet Manager, a commercial fleet management solution comprising MyMiX, an innovative driver engagement platform; MiX Vision, an on-road and in-vehicle video recording solution; MiX Rovi, an in-vehicle display and communications system; MiX RIBAS and DriveMate, an in-cab driving aid solution; MiX Hours of Service, which allows real-time monitoring and compliance; MiX Journey Management, an easy-to-use electronic alternative to paper-based systems; and MiX OEM Connect allows customer instant, direct integration to relevant, and powerful telematics data. The company provides MiX Asset Manager, asset tracking products including generators, light towers, storage tanks and pumps, and asset management solution for visibility of corporate assets; and Matrix, a suite of mobile asset management solutions for entry-level fleets and consumers, which offers real-time and historical vehicle tracking, and positioning, unauthorized vehicle use alerts, panic emergency response, crash alerts, driver behavior alerts, fuel tax logbooks, and vehicle maintenance notifications. In addition, it offers Beam-e, a crowdsourcing platform to locate vehicles without the expense of utilizing a traditional cellular network connection. The company delivers fleet and mobile asset management solutions as SaaS to 1,001,800 subscribers in South Africa, the Americas, the Middle East, Australia, Europe, and Brazil. MiX Telematics Limited was founded in 1996 and is headquartered in Boca Raton, Florida.

About Xperi

Xperi Inc. operates as a consumer and entertainment technology company worldwide. It offers Pay-TV solutions, including UX solutions that allows service providers to customize elements of the interactive program guide for their customers and to upgrade the programming features and services; IPTV, a cloud-based solution that supports various services and applications, such as TV programming, broadband OTT video content, digital music, photos, and other media experiences; managed IPTV service; video metadata and services; managed IPTV Service, a customizable, cloud-enabled, and end-to-end streaming video solution that enables operators to quickly launch a branded, fully compliant, full-featured Pay-TV service; metadata libraries comprising television, sports, movies, digital-first, celebrities, books, and video games; personalized content discovery, natural language voice, and insights; and TiVo DVR subscriptions, as well as technical support service. It also provides consumer electronics solutions, such as home and mobile audio solutions, and silicon and software solutions for edge inference; connected car solutions, including HD Radio and DTS AutoStage; and Media Platform that provides Vewd middleware solutions, TiVo OS, TiVo Stream 4K, connected TVs, and connected cars that leverage the TiVo OS, as well as advertising solutions. The company was incorporated in 2019 and is headquartered in San Jose, California.