Freightos (CRGO) and Its Competitors Critical Analysis

Freightos (NASDAQ:CRGO) is one of 49 publicly-traded companies in the “Financial Transaction Services” industry, but how does it contrast to its rivals? We will compare Freightos to related businesses based on the strength of its dividends, analyst recommendations, institutional ownership, earnings, profitability, valuation and risk.

Institutional and Insider Ownership

22.7% of Freightos shares are held by institutional investors. Comparatively, 66.6% of shares of all “Financial Transaction Services” companies are held by institutional investors. 19.6% of Freightos shares are held by company insiders. Comparatively, 20.5% of shares of all “Financial Transaction Services” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Freightos and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Freightos	-88.17%	-38.19%	-28.69%
Freightos Competitors	7.48%	8.42%	6.50%

Analyst Ratings

This is a summary of current ratings for Freightos and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freightos	0	0	1	0	3.00
Freightos Competitors	428	2506	5504	120	2.62

Freightos currently has a consensus price target of $3.50, suggesting a potential upside of 53.51%. As a group, “Financial Transaction Services” companies have a potential upside of 10.08%. Given Freightos’ stronger consensus rating and higher probable upside, equities analysts clearly believe Freightos is more favorable than its rivals.

Risk and Volatility

Freightos has a beta of 0.08, suggesting that its share price is 92% less volatile than the S&P 500. Comparatively, Freightos’ rivals have a beta of 1.32, suggesting that their average share price is 32% more volatile than the S&P 500.

Earnings and Valuation

This table compares Freightos and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Freightos	$23.78 million	-$22.49 million	-4.96
Freightos Competitors	$4.28 billion	$1.11 billion	-24.51

Freightos’ rivals have higher revenue and earnings than Freightos. Freightos is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Freightos rivals beat Freightos on 9 of the 13 factors compared.

About Freightos

Freightos Limited, together with its subsidiaries, operates a vendor-neutral booking and payment platform for international freight. It operates WebCargo, a platform for connecting carriers and forwarders; and Freightos.com, a platform for connecting service providers to importers/exporters. The company also offers software-as-a-service solutions, such as WebCargo Air for airline rates and ebookings; WebCargo AcceleRate, a multi-modal rate repository; data services; and WebCargo Airline Control Panel that enables airlines to control bookings and optimize pricing with real-time booking analytics. In addition, it provides digital customs brokerage services. The company is based in Jerusalem, Israel.