MiX Telematics (NYSE:MIXT) and SecureWorks (NASDAQ:SCWX) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, risk and valuation.
Volatility and Risk
MiX Telematics has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, SecureWorks has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.
Valuation & Earnings
This table compares MiX Telematics and SecureWorks' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
MiX Telematics | $145.65 million | 2.22 | $10.99 million | $0.69 | 19.52 |
SecureWorks | $552.77 million | 2.08 | $-31,670,000.00 | ($0.19) | -73.47 |
MiX Telematics has higher earnings, but lower revenue than SecureWorks. SecureWorks 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 SecureWorks, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
MiX Telematics | 0 | 1 | 2 | 0 | 2.67 |
SecureWorks | 4 | 3 | 0 | 0 | 1.43 |
MiX Telematics presently has a consensus price target of $17.50, suggesting a potential upside of 29.92%. SecureWorks has a consensus price target of $13.50, suggesting a potential downside of 3.30%. Given MiX Telematics' stronger consensus rating and higher possible upside, equities research analysts plainly believe MiX Telematics is more favorable than SecureWorks.
Insider & Institutional Ownership
31.7% of MiX Telematics shares are held by institutional investors. Comparatively, 8.6% of SecureWorks shares are held by institutional investors. 21.4% of MiX Telematics shares are held by company insiders. Comparatively, 87.8% of SecureWorks shares are held by company 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 SecureWorks' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
MiX Telematics | 6.39% | 10.94% | 7.56% |
SecureWorks | -3.89% | -0.35% | -0.23% |
Summary
MiX Telematics beats SecureWorks on 11 of the 14 factors compared between the two stocks.