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

Institutional & Insider Ownership

27.1% of MiX Telematics shares are owned by institutional investors. Comparatively, 12.0% of Materialise shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

MiX Telematics has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Materialise has a beta of 1.75, indicating that its share price is 75% more volatile than the S&P 500.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MiX Telematics $114.82 million 2.27 $8.65 million $0.41 28.37
Materialise $120.67 million 5.37 -$3.34 million ($0.07) -195.40

MiX Telematics has higher earnings, but lower revenue than Materialise. Materialise 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 $0.13 per share and has a dividend yield of 1.1%. Materialise does not pay a dividend. MiX Telematics pays out 31.7% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings for MiX Telematics and Materialise, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MiX Telematics 0 2 1 0 2.33
Materialise 0 0 4 0 3.00

MiX Telematics currently has a consensus target price of $15.00, indicating a potential upside of 28.98%. Materialise has a consensus target price of $15.50, indicating a potential upside of 13.30%. Given MiX Telematics’ higher possible upside, equities analysts plainly believe MiX Telematics is more favorable than Materialise.

Profitability

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

Net Margins Return on Equity Return on Assets
MiX Telematics 7.73% 8.99% 6.81%
Materialise -2.07% -3.45% -1.55%

Summary

MiX Telematics beats Materialise on 8 of the 14 factors compared between the two stocks.

MiX Telematics Company Profile

MiX Telematics Limited is a South Africa-based provider of fleet and mobile asset management solutions delivered as Software-as-a-Service (SaaS) to customers. The Company’s operating segments include Africa, Europe, Americas, Middle East and Australasia, Brazil and Central Services Organization. The Company’s products and services provide enterprise fleets, small fleets and consumers with solutions for safety, risk management and security. The Company’s solutions include MiX Fleet Manager, which consists of an on-board computer, an online tracking and information portal, as well as access to fleet and driver reports and analytics; MiX SafeDrive provides In-Vehicle Monitoring Systems (IVMS) that monitor driver performance, identify unsafe behaviors and provide audible alerts; Matrix is focused on personal safety and consumer telematics through vehicle tracking-and-recovery products and services, and Beam-e, which is a wireless device that fits into vehicles, motorbikes or caravan.

Materialise Company Profile

Materialise NV is a Belgium-based company engaged in the software industry. The Company is a provider of additive manufacturing software and of three dimensional (3D) printing services. Materialise NV incorporates of 3D printing experience into a range of software solution and 3D printing services, through which the Company seeks to form the backbone of the 3D printing industry. Its solutions enable players in a wide variety of industries, including healthcare, automotive, aerospace, art and design, and consumer goods, to build 3D printing applications. The Company operates in the domestic market and worldwide, including Colombia, Brazil, Australia, Malaysia, China, Japan, Austria, Poland, Germany and France, among others.

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