Critical Comparison: BEST (NYSE:BEST) vs. Patriot Transportation (NYSE:PATI)

BEST (NYSE:BEST) and Patriot Transportation (NASDAQ:PATI) are both small-cap transportation companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Insider & Institutional Ownership

20.0% of BEST shares are owned by institutional investors. Comparatively, 51.1% of Patriot Transportation shares are owned by institutional investors. 41.7% of BEST shares are owned by insiders. Comparatively, 11.5% of Patriot Transportation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares BEST and Patriot Transportation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BEST $4.07 billion 0.38 -$73.88 million ($0.21) -19.81
Patriot Transportation $114.07 million 0.49 $5.11 million N/A N/A

Patriot Transportation has lower revenue, but higher earnings than BEST.

Profitability

This table compares BEST and Patriot Transportation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BEST -1.35% -10.65% -3.40%
Patriot Transportation 1.97% 2.17% 1.64%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for BEST and Patriot Transportation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BEST 0 1 1 0 2.50
Patriot Transportation 0 0 0 0 N/A

BEST presently has a consensus target price of $6.50, indicating a potential upside of 56.25%. Given BEST’s higher probable upside, equities research analysts clearly believe BEST is more favorable than Patriot Transportation.

Volatility & Risk

BEST has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, Patriot Transportation has a beta of -0.12, suggesting that its share price is 112% less volatile than the S&P 500.

Summary

Patriot Transportation beats BEST on 7 of the 12 factors compared between the two stocks.

About BEST

BEST Inc. operates as a smart supply chain service provider in the People's Republic of China. Its proprietary technology platform enables its ecosystem participants to operate their businesses through various SaaS-based applications. The company applies its technologies to a range of applications, such as network and route optimization, swap bodies, sorting line automation, smart warehouses, and store management. It offers integrated services and solutions across the supply chain, including warehouse management, order fulfillment, express delivery, freight, and other services for multinational and corporate customers, as well as small and medium enterprises. The company also provides express delivery services; and door-to-door integrated cross-border supply chain services to and from China, including international express, less-than-truckload, fulfillment, reverse logistics, and freight forwarding through its network, and transportation and warehouse partners. In addition, it operates real-time bidding platform to source truckload capacity from independent transportation service providers and agents; and offers online merchandise sourcing and store management services for convenience stores, as well as B2C services, such as parcel pick-up and drop-off, and bill payment services. Further, BEST Inc. provides various value-added services, including customized financial services, including fleet and equipment finance leases; and centralized sourcing of products and services, such as bulk procurement of trucks and accessories. The company was founded in 2007 and is headquartered in Hangzhou, the People's Republic of China.

About Patriot Transportation

Patriot Transportation Holding, Inc., through its subsidiary, Florida Rock & Tank Lines, Inc., engages in the transportation business. The company is involved in hauling petroleum related products, including gas and diesel fuel; and dry bulk commodities, such as cement, lime, and various industrial powder products, and liquid chemicals. It serves convenience stores and hypermarket accounts, fuel wholesalers, and oil companies, as well as industrial companies comprising cement and concrete accounts, and product distribution companies. As of September 30, 2018, the company operated a fleet of 415 tractors and 532 tank trailers, and 20 terminals and 6 satellite locations. Patriot Transportation Holding, Inc. is headquartered in Jacksonville, Florida.

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