Sparton Corporation (NYSE: SPA) and Pangaea Logistics Solutions (NASDAQ:PANL) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitabiliy and analyst recommendations.

Institutional and Insider Ownership

66.4% of Sparton Corporation shares are owned by institutional investors. Comparatively, 27.8% of Pangaea Logistics Solutions shares are owned by institutional investors. 5.0% of Sparton Corporation shares are owned by insiders. Comparatively, 87.2% of Pangaea Logistics Solutions shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Sparton Corporation and Pangaea Logistics Solutions’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sparton Corporation $400.14 million 0.57 $22.79 million ($4.34) -5.32
Pangaea Logistics Solutions $278.53 million 0.36 $27.87 million $0.21 12.67

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Sparton Corporation and Pangaea Logistics Solutions, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sparton Corporation 0 2 0 0 2.00
Pangaea Logistics Solutions 0 0 0 0 N/A

Sparton Corporation presently has a consensus price target of $22.00, indicating a potential downside of 4.80%. Given Sparton Corporation’s higher possible upside, equities research analysts plainly believe Sparton Corporation is more favorable than Pangaea Logistics Solutions.

Risk & Volatility

Sparton Corporation has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, Pangaea Logistics Solutions has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Sparton Corporation -10.61% 12.79% 4.34%
Pangaea Logistics Solutions 2.73% 6.74% 3.25%

Summary

Sparton Corporation beats Pangaea Logistics Solutions on 7 of the 11 factors compared between the two stocks.

About Sparton Corporation

Sparton Corporation is a provider of design, development and manufacturing services for electromechanical devices, as well as engineered products complementary to the same electromechanical value stream. The Company operates through two segments: Manufacturing & Design Services (MDS) and Engineered Components & Products (ECP). The Company serves the medical and biotechnology, military and aerospace, and industrial and commercial markets. Its products and services include offerings for original equipment manufacturers (OEM) and emerging technology (ET) customers, which utilize microprocessor-based systems, such as transducers, printed circuit boards and assemblies, and sensors, as well as development and design engineering services. It develops and manufactures sonobuoys, which are anti-submarine warfare (ASW) devices. The Company also manufactures rugged flat panel display systems for military panel personal computer workstations, air traffic control and industrial applications.

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.

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