Financial Review: MiX Telematics (MIXT) & Altair Engineering (ALTR)

MiX Telematics (NYSE:MIXT) and Altair Engineering (NASDAQ:ALTR) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.

Profitability

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This table compares MiX Telematics and Altair Engineering’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MiX Telematics 10.58% 13.30% 9.91%
Altair Engineering -12.83% 13.76% 5.04%

Institutional and Insider Ownership

35.5% of MiX Telematics shares are owned by institutional investors. Comparatively, 38.3% of Altair Engineering shares are owned by institutional investors. 38.2% of Altair Engineering shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and price targets for MiX Telematics and Altair Engineering, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MiX Telematics 0 0 1 1 3.50
Altair Engineering 0 3 4 0 2.57

MiX Telematics currently has a consensus target price of $26.50, indicating a potential upside of 48.38%. Altair Engineering has a consensus target price of $39.33, indicating a potential upside of 19.88%. Given MiX Telematics’ stronger consensus rating and higher possible upside, research analysts clearly believe MiX Telematics is more favorable than Altair Engineering.

Risk and Volatility

MiX Telematics has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500. Comparatively, Altair Engineering has a beta of 1.56, indicating that its share price is 56% more volatile than the S&P 500.

Earnings and Valuation

This table compares MiX Telematics and Altair Engineering’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MiX Telematics $144.81 million 2.78 $13.98 million $0.58 30.79
Altair Engineering $333.33 million 6.92 -$99.40 million ($0.63) -52.08

MiX Telematics has higher earnings, but lower revenue than Altair Engineering. Altair Engineering is trading at a lower price-to-earnings ratio than MiX Telematics, indicating that it is currently the more affordable of the two stocks.

Dividends

MiX Telematics pays an annual dividend of $0.16 per share and has a dividend yield of 0.9%. Altair Engineering does not pay a dividend. MiX Telematics pays out 27.6% of its earnings in the form of a dividend. MiX Telematics has increased its dividend for 2 consecutive years.

Summary

MiX Telematics beats Altair Engineering on 10 of the 18 factors compared between the two stocks.

About MiX Telematics

MiX Telematics Limited provides fleet and mobile asset management solutions through software-as-a-service delivery model. The company offers fleet solutions, including MiX Fleet Manager Premium that provides access to secure information about drivers and vehicles; MiX Fleet Manager Essential for monitoring drivers and vehicles; and MiX Asset Manager, a solution for fleet owners and managers to track and monitor vehicles. It also provides consumer solutions, including Matrix that provides vehicle tracking, telematics, and personal safety services; and Beame, a wireless device, which offers mobile asset tracking and recovery services. In addition, the company provides value added services comprising driver communication, collision prevention and reduction, satellite communication, driver identification, trailer tracking, field services management, driver engagement, fuel security, outsourced control room, and driver management solutions, as well as voice kits and keypads, and in-vehicle camera. MiX Telematics Limited has operations in Africa, the Americas, the Middle East, Australasia, Europe, and Brazil. The company was founded in 1996 and is based in Midrand, South Africa.

About Altair Engineering

Altair Engineering Inc., together with its subsidiaries, provides enterprise-class engineering software worldwide. The company operates through two segments, Software and Client Engineering Services. Its integrated suite of multi-disciplinary computer aided engineering software optimizes design performance across various disciplines, including structures, motion, fluids, thermal management, electromagnetics, system modeling and embedded systems, as well as provides data analytics and true-to-life visualization and rendering. The company also offers client engineering services to support customers with long-term ongoing product design and development services, as well as consulting, training, and support services. Altair Engineering Inc. was founded in 1985 and is headquartered in Troy, Michigan.

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