I.D. Systems (NASDAQ: IDSY) and Garmin (NASDAQ:GRMN) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, valuation, analyst recommendations, profitabiliy and risk.

Earnings and Valuation

This table compares I.D. Systems and Garmin’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
I.D. Systems $34.34 million 2.75 -$6.37 million ($0.58) -12.00
Garmin $3.03 billion 3.20 $724.33 million $3.49 14.78

Garmin has higher revenue and earnings than I.D. Systems. I.D. Systems is trading at a lower price-to-earnings ratio than Garmin, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for I.D. Systems and Garmin, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
I.D. Systems 0 1 2 0 2.67
Garmin 2 5 3 0 2.10

I.D. Systems presently has a consensus target price of $7.67, suggesting a potential upside of 10.15%. Garmin has a consensus target price of $50.50, suggesting a potential downside of 2.11%. Given I.D. Systems’ stronger consensus rating and higher possible upside, equities analysts clearly believe I.D. Systems is more favorable than Garmin.

Dividends

Garmin pays an annual dividend of $2.04 per share and has a dividend yield of 4.0%. I.D. Systems does not pay a dividend. Garmin pays out 58.5% of its earnings in the form of a dividend.

Profitability

This table compares I.D. Systems and Garmin’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
I.D. Systems -22.01% -38.85% -15.40%
Garmin 21.78% 15.86% 11.91%

Insider and Institutional Ownership

44.1% of I.D. Systems shares are held by institutional investors. Comparatively, 41.7% of Garmin shares are held by institutional investors. 12.2% of I.D. Systems shares are held by insiders. Comparatively, 18.3% of Garmin shares are held by insiders. 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.

Volatility and Risk

I.D. Systems has a beta of 0.09, indicating that its share price is 91% less volatile than the S&P 500. Comparatively, Garmin has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

Summary

Garmin beats I.D. Systems on 11 of the 15 factors compared between the two stocks.

About I.D. Systems

I.D. Systems, Inc. (I.D. Systems) develops, markets and sells wireless machine-to-machine solutions for managing and securing enterprise assets, which include industrial vehicles, such as forklifts and airport ground support equipment, rental vehicles, and transportation assets, such as dry van trailers, refrigerated trailers, railcars and containers. Its systems utilize radio frequency identification (RFID), wireless fidelity (Wi-Fi), satellite or cellular communications, and sensor technology and software to control, track, monitor and analyze assets. It provides data reporting and analysis software tool platform, I.D. Systems Analytics PowerFleet IQ (for fleets of forklifts and other industrial trucks) and VeriWise IQ (for fleets of containers, trailers and other transportation assets). Its solutions include industrial and rental fleet asset management, industrial fleet asset management, transportation asset management and rental fleet asset management solutions.

About Garmin

Garmin Ltd. (Garmin) and subsidiaries offer global positioning system (GPS) navigation and wireless devices and applications. The Company operates through five segments. It offers a range of auto navigation products, as well as a range of products and applications designed for the mobile GPS market. It offers products to consumers around the world, including Outdoor Handhelds, Wearable Devices, Golf Devices, and Dog Tracking and Training/Pet Obedience Devices. It offers a range of products designed for use in fitness and activity tracking. Garmin offers a range of products designed for use in fitness and activity tracking. Its aviation business segment is a provider of solutions to aircraft manufacturers, existing aircraft owners and operators, as well as military and government customers and serves a range of aircraft, including transport aircraft, business aviation, general aviation, experimental/light sport, helicopters, optionally piloted vehicles and unmanned aerial vehicles.

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