FRP Holdings (NASDAQ: FRPH) and Hennessy Capital Acquisition Corp. II (NASDAQ:DSKE) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Profitability

This table compares FRP Holdings and Hennessy Capital Acquisition Corp. II’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FRP Holdings 17.90% 3.40% 2.53%
Hennessy Capital Acquisition Corp. II N/A -24.73% -3.71%

Valuation & Earnings

This table compares FRP Holdings and Hennessy Capital Acquisition Corp. II’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
FRP Holdings $32.09 million 13.57 $21.12 million $0.68 64.04
Hennessy Capital Acquisition Corp. II $682.32 million 0.89 $74.48 million N/A N/A

Hennessy Capital Acquisition Corp. II has higher revenue and earnings than FRP Holdings.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for FRP Holdings and Hennessy Capital Acquisition Corp. II, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FRP Holdings 0 0 0 0 N/A
Hennessy Capital Acquisition Corp. II 0 0 4 0 3.00

Hennessy Capital Acquisition Corp. II has a consensus target price of $14.50, indicating a potential upside of 5.61%. Given Hennessy Capital Acquisition Corp. II’s higher possible upside, analysts plainly believe Hennessy Capital Acquisition Corp. II is more favorable than FRP Holdings.

Risk & Volatility

FRP Holdings has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500. Comparatively, 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.

Institutional & Insider Ownership

45.5% of FRP Holdings shares are owned by institutional investors. Comparatively, 17.1% of Hennessy Capital Acquisition Corp. II shares are owned by institutional investors. 23.3% of FRP Holdings shares are owned by insiders. Comparatively, 20.0% of Hennessy Capital Acquisition Corp. II shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

FRP Holdings beats Hennessy Capital Acquisition Corp. II on 7 of the 11 factors compared between the two stocks.

FRP Holdings Company Profile

FRP Holdings, Inc. is a holding company engaged in various real estate businesses. The Company conducts its business through its subsidiaries, FRP Maryland, Inc., FRP Development Corp. and Florida Rock Properties, Inc. The segments of the Company include leasing and management of warehouse and office building owned by the Company (the Asset Management Segment), leasing and management of mining royalty land owned by the Company (the Mining Royalty Lands Segment) and real property acquisition, entitlement, development and construction primarily for warehouse and office buildings (the Land Development and Construction Segment). The Company’s Asset Management Segment owns leases and manages warehouse and office buildings. Its Mining Royalty Lands Segment owns several properties comprising approximately 15,000 acres under lease for mining rents or royalties. Its Land Development and Construction Segment owns and monitors the parcels of land that are in various stages of development.

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.

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