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

Risk and Volatility

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.

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 33.3% of its earnings in the form of a dividend.

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 hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

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%

Analyst Recommendations

This is a summary of recent ratings and target prices 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 price target of $15.00, indicating a potential upside of 30.10%. Materialise has a consensus price target of $15.50, indicating a potential upside of 19.51%. Given MiX Telematics’ higher possible upside, research analysts clearly believe MiX Telematics is more favorable than Materialise.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MiX Telematics $114.82 million 2.25 $8.65 million $0.39 29.56
Materialise $120.67 million 5.09 -$3.34 million ($0.07) -185.26

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.

Summary

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

About MiX Telematics

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.

About Materialise

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.

Receive News & Ratings for MiX Telematics Ltd - Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for MiX Telematics Ltd - and related companies with MarketBeat.com's FREE daily email newsletter.