Pangaea Logistics Solutions (NASDAQ: PANL) and Saia (NASDAQ:SAIA) are both small-cap transportation companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.

Risk and Volatility

Pangaea Logistics Solutions has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500. Comparatively, Saia has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Pangaea Logistics Solutions and Saia, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pangaea Logistics Solutions 0 0 1 0 3.00
Saia 0 2 4 0 2.67

Pangaea Logistics Solutions currently has a consensus price target of $111.10, suggesting a potential upside of 4,635.72%. Saia has a consensus price target of $53.60, suggesting a potential downside of 14.65%. Given Pangaea Logistics Solutions’ stronger consensus rating and higher probable upside, equities analysts plainly believe Pangaea Logistics Solutions is more favorable than Saia.

Profitability

This table compares Pangaea Logistics Solutions and Saia’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pangaea Logistics Solutions 0.88% 6.56% 3.14%
Saia 4.12% 10.84% 6.12%

Valuation and Earnings

This table compares Pangaea Logistics Solutions and Saia’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Pangaea Logistics Solutions $313.00 million 0.33 $30.99 million $0.08 29.33
Saia $1.29 billion 1.23 $168.48 million $2.06 30.49

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

Insider & Institutional Ownership

28.7% of Pangaea Logistics Solutions shares are held by institutional investors. Comparatively, 97.0% of Saia shares are held by institutional investors. 86.2% of Pangaea Logistics Solutions shares are held by insiders. Comparatively, 1.5% of Saia shares are held 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.

Summary

Saia beats Pangaea Logistics Solutions on 10 of the 14 factors compared between the two stocks.

About Pangaea Logistics Solutions

Pangaea Logistics Solutions, Ltd. is a holding company. The Company is a provider of seaborne drybulk transportation services. The Company services a range of industrial customers who require the transportation of a range of drybulk cargoes, including grains, coal, iron ore, pig iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite and limestone. The Company addresses the transportation needs of its customers by undertaking a set of services and activities, including cargo loading, cargo discharge, vessel chartering, voyage planning and technical vessel management. The Company uses a mix of owned and chartered-in motor vessels to transport over 18.3 million deadweight tons (dwt) of cargo to approximately 100 ports across the world, averaging over 40 vessels in service. The Company’s owned fleet includes eight Panamax drybulk carriers, four Supramax drybulk carriers and two Handymax drybulk carriers. Its vessels include Nordic Orion, Nordic Odyssey and Bulk Trident.

About Saia

Saia, Inc. is a transportation company. The Company provides regional and interregional less-than-truckload (LTL) services. The Company also offers a range of other value-added services, including non-asset truckload, expedited and logistics services across the United States. The Company’s subsidiary Saia Motor Freight Line, LLC (Saia LTL Freight) is a LTL carrier. As of December 31, 2016, Saia LTL Freight had served 34 states in the South, Southwest, Midwest, Pacific Northwest and West. Saia LTL Freight specializes in offering its customers a range of regional and interregional LTL services, including time-definite and expedited options. As of December 31, 2016, Saia LTL Freight operated a network consisting of 151 owned and leased locations. The Company’s other subsidiaries include Saia TL Plus, LLC, Saia Logistics Services, LLC, Saia Sales, LLC, Saia Metrogo, LLC, LinkEx, Inc. and Saia Motor Freight Mexico, S. DE R.L. DE C.V.

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