Analyzing P.A.M. Transportation Services (PTSI) and Universal Logistics (NASDAQ:ULH)

P.A.M. Transportation Services (NASDAQ: PTSI) and Universal Logistics (NASDAQ:ULH) are both small-cap industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.

Insider and Institutional Ownership

23.2% of P.A.M. Transportation Services shares are held by institutional investors. Comparatively, 27.3% of Universal Logistics shares are held by institutional investors. 62.0% of P.A.M. Transportation Services shares are held by insiders. Comparatively, 71.0% of Universal Logistics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for P.A.M. Transportation Services and Universal Logistics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
P.A.M. Transportation Services 0 1 0 0 2.00
Universal Logistics 0 1 1 0 2.50

P.A.M. Transportation Services currently has a consensus price target of $30.00, indicating a potential downside of 16.87%. Universal Logistics has a consensus price target of $23.00, indicating a potential upside of 4.55%. Given Universal Logistics’ stronger consensus rating and higher probable upside, analysts clearly believe Universal Logistics is more favorable than P.A.M. Transportation Services.

Profitability

This table compares P.A.M. Transportation Services and Universal Logistics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
P.A.M. Transportation Services 1.85% 8.38% 2.16%
Universal Logistics 0.55% 11.59% 2.94%

Risk & Volatility

P.A.M. Transportation Services has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500. Comparatively, Universal Logistics has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500.

Valuation & Earnings

This table compares P.A.M. Transportation Services and Universal Logistics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
P.A.M. Transportation Services $432.85 million 0.53 $11.10 million $1.26 28.64
Universal Logistics $1.07 billion 0.58 $24.24 million $0.23 95.65

Universal Logistics has higher revenue and earnings than P.A.M. Transportation Services. P.A.M. Transportation Services is trading at a lower price-to-earnings ratio than Universal Logistics, indicating that it is currently the more affordable of the two stocks.

Dividends

Universal Logistics pays an annual dividend of $0.28 per share and has a dividend yield of 1.3%. P.A.M. Transportation Services does not pay a dividend. Universal Logistics pays out 121.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Universal Logistics beats P.A.M. Transportation Services on 13 of the 16 factors compared between the two stocks.

P.A.M. Transportation Services Company Profile

P.A.M. Transportation Services, Inc. is a holding company. The Company, through its subsidiaries, operates as a truckload transportation and logistics company. It operates in the motor carrier segment. It operates as a truckload dry van carrier transporting general commodities throughout the continental United States, as well as in certain Canadian provinces. It provides transportation services in Mexico under agreements with Mexican carriers. Its operations are classified into truckload services, or brokerage and logistics services. Truckload services include transportation services, in which it utilizes company owned trucks or independent operator owned trucks for the pickup and delivery of freight. The brokerage and logistics services consist of services, such as transportation scheduling, routing, mode selection, transloading and other services related to the transportation of freight, which may or may not involve the use of company owned or independent operator owned equipment.

Universal Logistics Company Profile

Universal Logistics Holdings, Inc., formerly Universal Truckload Services, Inc., is an asset-light provider of customized transportation and logistics solutions across the United States, Mexico, Canada and Colombia. The Company operates through two segments: the transportation segment and the logistics segment. The Company’s operations aggregated in the transportation segment are associated with individual freight shipments coordinated by its agents, company-managed terminals and specialized services operations. The Company’s operations aggregated in the logistics segment deliver value-added services and transportation services to specific customers. Its other operating segments consist of the Company’s subsidiaries that provide support services to other subsidiaries and to owner-operators, including shop maintenance and equipment leasing. The Company groups its services into three service categories: transportation, value-added and intermodal support.

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