Financial Review: Haoxin (NASDAQ:HXHX) vs. PowerFleet (NASDAQ:AIOT)

Haoxin (NASDAQ:HXHX) and PowerFleet (NASDAQ:AIOT) are both small-cap transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for Haoxin and PowerFleet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Haoxin	1	0	0	0	1.00
PowerFleet	0	2	4	0	2.67

PowerFleet has a consensus price target of $10.33, indicating a potential upside of 165.64%. Given PowerFleet’s stronger consensus rating and higher probable upside, analysts clearly believe PowerFleet is more favorable than Haoxin.

Insider & Institutional Ownership

73.4% of PowerFleet shares are owned by institutional investors. 6.3% of PowerFleet shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Haoxin and PowerFleet”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Haoxin	$25.57 million	0.34	$3.17 million	N/A	N/A
PowerFleet	$362.52 million	1.44	-$50.99 million	($0.23)	-16.91

Haoxin has higher earnings, but lower revenue than PowerFleet.

Profitability

This table compares Haoxin and PowerFleet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Haoxin	N/A	N/A	N/A
PowerFleet	-7.00%	-5.23%	-2.61%

Summary

PowerFleet beats Haoxin on 7 of the 11 factors compared between the two stocks.

About Haoxin

We are a provider of temperature-controlled truckload service and urban delivery services in China with over 21 years of experience in the transportation industry. We started our urban delivery service business in 2003 and started expanding our business into temperature-controlled truckload service in 2016. We currently conduct all of our operations through our subsidiaries, Ningbo Haoxin, Zhejiang Haoxin, Longanda and Haiyue, and have experienced a steady growth in our business in recent years. The goods we take charge of transporting focus on factory logistics, which include electronic devices, chemicals, fruit, food and commercial goods. After continuous development, we have been recognized and accredited by the China Federation of Logistics and Purchasing as a 3A-Grade transportation service provider. As of the date of this prospectus, we operate a truckload fleet with 88 tractors, 94 trailers and 46 vans, none of which are under finance lease. We do not use vehicles under rental arrangement to conduct our services and we prefer to acquire new vehicles via finance lease rather than one-off cash payment. Given the large scale of our fleet, we offer both network density and broad geographic coverage to meet our customers’ diverse transportation needs within the PRC. Our business has created a successful business model that has allowed us to expand our customer base and market coverage whilst maintaining good relationships with our existing customers. We mainly provide transportation services with our large and medium-sized temperature-controlled logistics transportation vehicles, and charge our customers based on mileage. In addition to temperature-controlled truckload services, we also provide urban delivery services with our medium-sized vans to customers who have short-distance, intra-city delivery needs. The sales revenue generated from temperature-controlled truckload service accounts for about 89.1% and the urban delivery service accounts for approximate 10.9% out of our total sales revenue for the six months ended June 30, 2024. The sales revenue generated from temperature-controlled truckload service accounts for about 88.2% and the urban delivery service accounts for approximate 11.8% out of our total sales revenue for the year ended December 31, 2023. We optimize the loading of the vehicles on the forward and return journeys to reduce costs. We adopt high standards for our own services and provide customers with high-quality, safe and standardized services. We also use a digitized management system in which temperature control can be accessed throughout the whole transportation process through advanced vehicle GPS positioning and real-time temperature monitoring system. We also pay special attention to safe operation and conduct regular safety training and emergency drills to enhance our drivers’ safety awareness. Additionally, we have installed safety systems and warning systems on each vehicle to reduce likelihood of accident. We plan on consolidating the products that we transport and build cold temperature warehouses to reduce costs. We also plan to obtain relevant qualifications for pharmaceuticals and incorporate medicine transportation into our daily business. We will aim to strengthen informatization construction to integrate the existing vehicle dispatching system and temperature control to build a system to improve efficiency. Our mission is to become the most reliable and sustainable transportation company that specialize in temperature-controlled truckload services in China by offering punctual, cost-effective, capable and intelligent transportation services, while maintaining a sizeable fleet of transportation vehicles of our own as well as reliable subcontracting arrangements. Given that the transportation industry in many regions of China is still underrepresented, we aim to capture additional market share by leveraging our strengths we have developed during the past 21 years and continue to grow our business by implementing a number of strategies. Our principal executive office is located in Ningbo, Zhejiang Province, People’s Republic of China.

About PowerFleet

PowerFleet, Inc. engages in the provision of fleet management solutions for logistics, industrial, and vehicles. It offers wireless Internet of Things and machine to machine solutions for securing, controlling, tracking, and managing enterprise assets such as industrial trucks, tractor trailers, containers, cargo, and vehicle and truck fleets. It operates through the following geographical segments: United States, Israel, and Other. The company was founded in 1993 and is headquartered in Woodcliff Lake, NJ.