Analyzing ArcBest (NASDAQ:ARCB) and Pamt (NASDAQ:PAMT)

Pamt (NASDAQ:PAMTGet Free Report) and ArcBest (NASDAQ:ARCBGet Free Report) are both small-cap transportation companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, valuation, analyst recommendations, profitability and earnings.

Profitability

This table compares Pamt and ArcBest’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pamt -4.45% -2.58% -1.07%
ArcBest 4.16% 11.79% 6.23%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Pamt and ArcBest, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pamt 0 1 0 0 2.00
ArcBest 1 7 4 0 2.25

Pamt currently has a consensus target price of $16.50, suggesting a potential upside of 25.19%. ArcBest has a consensus target price of $118.91, suggesting a potential upside of 47.44%. Given ArcBest’s stronger consensus rating and higher possible upside, analysts clearly believe ArcBest is more favorable than Pamt.

Valuation and Earnings

This table compares Pamt and ArcBest”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pamt $714.65 million 0.40 -$31.80 million ($1.46) -9.03
ArcBest $4.18 billion 0.45 $173.96 million $7.33 11.00

ArcBest has higher revenue and earnings than Pamt. Pamt is trading at a lower price-to-earnings ratio than ArcBest, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

22.1% of Pamt shares are owned by institutional investors. Comparatively, 99.3% of ArcBest shares are owned by institutional investors. 27.2% of Pamt shares are owned by insiders. Comparatively, 1.2% of ArcBest shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Pamt has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500. Comparatively, ArcBest has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500.

Summary

ArcBest beats Pamt on 13 of the 14 factors compared between the two stocks.

About Pamt

(Get Free Report)

PAMT Corp. is a holding company, which engages in the provision of truckload and logistics services through its subsidiaries. Its freight consists primarily of automotive parts, expedited goods, consumer goods, such as general retail store merchandise, and manufactured goods, such as heating and air conditioning units. The company was founded in June 1986 and is headquartered in Tontitown, AR.

About ArcBest

(Get Free Report)

ArcBest Corporation, an integrated logistics company, engages in the provision of ground, air, and ocean transportation solutions. It operates through two segments: Asset-Based and Asset-Light. The Asset-Based segment provides less-than-truckload (LTL) services, that transports general commodities, such as food, textiles, apparel, furniture, appliances, chemicals, non-bulk petroleum products, rubber, plastics, metal and metal products, wood, glass, automotive parts, machinery, and miscellaneous manufactured products. The segment also offers motor carrier freight transportation services to customers in Mexico through arrangements with trucking companies. The Asset-Light segment provides ground expedite services; third-party transportation brokerage services by sourcing various capacity solutions, including dry van over-the-road, temperature-controlled and refrigerated, flatbed, intermodal or container shipping, and specialized equipment; less-than- and full container load ocean transportation services; warehousing and distribution services; managed transportation services; and moving services to do-it-yourself' consumer, as well as provides final mile, time critical, product launch, retail logistics, supply chain optimization, and trade show shipping services. This segment also offers premium logistics services, such as deployment of specialized equipment to meet linehaul requirements; international freight transportation with air, ocean, and ground services; and engages in the final mile, time-critical, product launch, retail logistics, supply chain optimization, brokered LTL, and trade show shipping activities. The company was formerly known as Arkansas Best Corporation and changed its name to ArcBest Corporation in May 2014. ArcBest Corporation was founded in 1923 and is headquartered in Fort Smith, Arkansas.

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