Pointer Telocation (NASDAQ: CAMP) and CalAmp (NASDAQ:CAMP) are both small-cap industrial products companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.

Insider & Institutional Ownership

12.3% of Pointer Telocation shares are held by institutional investors. Comparatively, 74.2% of CalAmp shares are held by institutional investors. 1.0% of Pointer Telocation shares are held by company insiders. Comparatively, 5.4% of CalAmp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Pointer Telocation and CalAmp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pointer Telocation 20.90% 15.94% 10.26%
CalAmp 7.45% 17.26% 7.21%

Volatility & Risk

Pointer Telocation has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, CalAmp has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Pointer Telocation and CalAmp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pointer Telocation 0 0 3 0 3.00
CalAmp 0 3 5 0 2.63

Pointer Telocation currently has a consensus target price of $20.67, indicating a potential upside of 69.76%. CalAmp has a consensus target price of $26.71, indicating a potential upside of 14.07%. Given Pointer Telocation’s stronger consensus rating and higher possible upside, analysts plainly believe Pointer Telocation is more favorable than CalAmp.

Valuation and Earnings

This table compares Pointer Telocation and CalAmp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pointer Telocation $78.15 million 1.27 $16.51 million $1.12 10.87
CalAmp $365.91 million 2.26 $16.61 million $0.92 25.46

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

Summary

CalAmp beats Pointer Telocation on 9 of the 14 factors compared between the two stocks.

Pointer Telocation Company Profile

Pointer Telocation Ltd. provides mobile resource management (MRM) products and services for the automotive and insurance industries, and mobile assets management markets worldwide. It operates through MRM and Cellocator sgments. The MRM segment offers asset management, fleet management, stolen vehicle retrieval (SVR), and connected car services. The Cellocator segment designs, develops, and manufactures MRM products, such as fleet management products, including remote monitoring and control solutions comprising command and control center, and communications infrastructure; asset management products; and SVR products. The company was formerly known as Nexus Telocation Systems Ltd. and changed its name to Pointer Telocation Ltd. in January 2006. Pointer Telocation Ltd. was founded in 1991 and is headquartered in Rosh Haayin, Israel.

CalAmp Company Profile

CalAmp Corp. provides in telematics systems, and software and subscription services worldwide. The company provides mobile resource management telematics devices for the Internet of Things market, which enable customers to optimize their operations by collecting, monitoring, and reporting business-critical information and desired intelligence from remote and mobile assets. It also offers a portfolio of wireless networking products, including asset tracking units, mobile telematics devices, and fixed and mobile wireless gateways and routers; telematics cloud platform applications; and software as a service applications. The company sells its products and services to customers in the transportation, government, construction, and automotive markets through direct sales organization, a network of licensees, and sales representatives, as well as through Websites and digital presence. CalAmp Corp. was founded in 1981 and is headquartered in Irvine, California.

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