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

Insider & Institutional Ownership

17.1% of Hennessy Capital Acquisition Corp. II shares are owned by institutional investors. Comparatively, 24.3% of P.A.M. Transportation Services shares are owned by institutional investors. 20.0% of Hennessy Capital Acquisition Corp. II shares are owned by insiders. Comparatively, 62.0% of P.A.M. Transportation Services shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Hennessy Capital Acquisition Corp. II and P.A.M. Transportation Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hennessy Capital Acquisition Corp. II N/A -24.73% -3.71%
P.A.M. Transportation Services 1.85% 8.52% 2.16%

Analyst Recommendations

This is a summary of recent recommendations for Hennessy Capital Acquisition Corp. II and P.A.M. Transportation Services, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hennessy Capital Acquisition Corp. II 0 0 4 0 3.00
P.A.M. Transportation Services 0 1 0 0 2.00

Hennessy Capital Acquisition Corp. II currently has a consensus price target of $14.50, suggesting a potential upside of 5.53%. P.A.M. Transportation Services has a consensus price target of $17.00, suggesting a potential downside of 28.42%. Given Hennessy Capital Acquisition Corp. II’s stronger consensus rating and higher probable upside, analysts plainly believe Hennessy Capital Acquisition Corp. II is more favorable than P.A.M. Transportation Services.

Risk and Volatility

Hennessy Capital Acquisition Corp. II has a beta of -0.21, indicating that its stock price is 121% less volatile than the S&P 500. Comparatively, P.A.M. Transportation Services has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.

Valuation and Earnings

This table compares Hennessy Capital Acquisition Corp. II and P.A.M. Transportation Services’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hennessy Capital Acquisition Corp. II $682.32 million 0.88 $74.48 million N/A N/A
P.A.M. Transportation Services $435.80 million 0.35 $52.41 million $1.25 19.00

Hennessy Capital Acquisition Corp. II has higher revenue and earnings than P.A.M. Transportation Services.

Hennessy Capital Acquisition Corp. II Company Profile

Daseke, Inc. is a consolidator of the open deck freight market in North America. The Company provides open deck transportation and logistics. It operates through two segments: Flatbed Solutions and Specialized Solutions. The Flatbed Solutions segment focuses on delivering transportation and logistics solutions that principally require the use of flatbed and retractable-sided transportation equipment. The Specialized Solutions segment focuses on delivering transportation and logistics solutions that principally include heavy haul, high-value customized, over-dimensional, step deck and removable gooseneck trailer solutions. The Company, as of September 5, 2017, had a fleet of over 3,800 trucks and over 8,200 flatbed and specialized trailer. The Company serves customers in the United States, Canada and Mexico.

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.

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