Shengfeng Development (NASDAQ:SFWL) versus PowerFleet (NASDAQ:AIOT) Financial Comparison

Shengfeng Development (NASDAQ:SFWL) and PowerFleet (NASDAQ:AIOT) are both transportation companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, valuation and risk.

Analyst Ratings

This is a breakdown of current ratings and price targets for Shengfeng Development and PowerFleet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shengfeng Development	1	0	0	0	1.00
PowerFleet	0	2	4	0	2.67

PowerFleet has a consensus target price of $10.33, indicating a potential upside of 209.38%. Given PowerFleet’s stronger consensus rating and higher probable upside, analysts clearly believe PowerFleet is more favorable than Shengfeng Development.

Profitability

This table compares Shengfeng Development and PowerFleet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shengfeng Development	N/A	N/A	N/A
PowerFleet	-7.00%	-5.23%	-2.61%

Insider and Institutional Ownership

1.1% of Shengfeng Development shares are owned by institutional investors. Comparatively, 73.4% of PowerFleet shares are owned by institutional investors. 6.3% of PowerFleet shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Shengfeng Development and PowerFleet”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shengfeng Development	$572.48 million	N/A	$11.93 million	N/A	N/A
PowerFleet	$362.52 million	1.24	-$50.99 million	($0.23)	-14.52

Shengfeng Development has higher revenue and earnings than PowerFleet.

Risk and Volatility

Shengfeng Development has a beta of -2.35, suggesting that its share price is 335% less volatile than the S&P 500. Comparatively, PowerFleet has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500.

Summary

PowerFleet beats Shengfeng Development on 6 of the 11 factors compared between the two stocks.

About Shengfeng Development

Shengfeng Development Limited, through its subsidiaries, provides contract logistics services in the People's Republic of China. The company offers business-to-business freight transportation services, such as full truckload and less than truckload; and cloud storage services, including warehouse management, order fulfillment, delivery process management, in-warehouse processing, and inventory optimization management services. It also provides value-added services comprising collection on delivery, customs declaration, delivery upstairs, packaging, pay-at-arrival, return proof of delivery, and shipment protection. The company serves clients in various industries, including manufacturing, energy, telecommunications, internet, fashion, fast moving consumer goods, publishing, agriculture, and e-commerce. Shengfeng Development Limited was founded in 2001 and is based in Fuzhou, the People's Republic of China.

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.