Analyzing P.A.M. Transportation Services (PTSI) and Swift Transportation (KNX)
P.A.M. Transportation Services (NASDAQ: PTSI) and Swift Transportation (NYSE:KNX) are both transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.
This table compares P.A.M. Transportation Services and Swift Transportation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|P.A.M. Transportation Services||1.85%||8.52%||2.16%|
Risk & Volatility
P.A.M. Transportation Services has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, Swift Transportation has a beta of 1.97, meaning that its stock price is 97% more volatile than the S&P 500.
This is a breakdown of current ratings for P.A.M. Transportation Services and Swift Transportation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|P.A.M. Transportation Services||0||1||0||0||2.00|
P.A.M. Transportation Services presently has a consensus target price of $17.00, indicating a potential downside of 39.29%. Swift Transportation has a consensus target price of $39.60, indicating a potential upside of 0.84%. Given Swift Transportation’s stronger consensus rating and higher probable upside, analysts clearly believe Swift Transportation is more favorable than P.A.M. Transportation Services.
Valuation and Earnings
This table compares P.A.M. Transportation Services and Swift Transportation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|P.A.M. Transportation Services||$435.80 million||0.41||$52.41 million||$1.25||22.40|
|Swift Transportation||$1.11 billion||2.85||$243.34 million||$1.25||31.42|
Swift Transportation has higher revenue and earnings than P.A.M. Transportation Services. P.A.M. Transportation Services is trading at a lower price-to-earnings ratio than Swift Transportation, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
24.3% of P.A.M. Transportation Services shares are held by institutional investors. 62.0% of P.A.M. Transportation Services shares are held by insiders. Comparatively, 9.9% of Swift Transportation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Swift Transportation beats P.A.M. Transportation Services on 11 of the 13 factors compared between the two stocks.
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.
Swift Transportation Company Profile
Knight Transportation, Inc. is a provider of multiple truckload transportation and logistics services, which involve the movement of trailer or container loads of freight from origin to destination for a single customer. The Company operates through two segments: Trucking and Logistics. Its Trucking segment consists of three operating units: dry van truckload, temperature-controlled truckload and drayage services. The Trucking segment provides truckload transportation, including services of various products, goods and materials. Its Logistics segment consists of two operating units: freight brokerage services and rail intermodal. It provides logistics, freight management and other non-trucking services to its customers, through its Logistics segment. It provides a range of truckload and logistics services through its nationwide network of service centers, truckload tractor fleets and its contractual access to third-party capacity providers. It operates primarily in the United States.
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