P.A.M. Transportation Services (NASDAQ: PTSI) and Celadon Group (NYSE:CGI) are both small-cap transportation companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, profitability, analyst recommendations and valuation.

Institutional & Insider Ownership

24.3% of P.A.M. Transportation Services shares are held by institutional investors. Comparatively, 85.3% of Celadon Group shares are held by institutional investors. 62.0% of P.A.M. Transportation Services shares are held by insiders. Comparatively, 3.8% of Celadon Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Celadon Group pays an annual dividend of $0.04 per share and has a dividend yield of 0.7%. P.A.M. Transportation Services does not pay a dividend. Celadon Group pays out 20.0% of its earnings in the form of a dividend.

Profitability

This table compares P.A.M. Transportation Services and Celadon Group’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%
Celadon Group -0.57% -1.65% -0.59%

Analyst Ratings

This is a summary of recent ratings for P.A.M. Transportation Services and Celadon Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
P.A.M. Transportation Services 0 1 0 0 2.00
Celadon Group 0 3 4 0 2.57

P.A.M. Transportation Services presently has a consensus price target of $17.00, indicating a potential downside of 39.52%. Celadon Group has a consensus price target of $25.50, indicating a potential upside of 318.03%. Given Celadon Group’s stronger consensus rating and higher possible upside, analysts clearly believe Celadon Group is more favorable than P.A.M. Transportation Services.

Risk & Volatility

P.A.M. Transportation Services has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500. Comparatively, Celadon Group has a beta of 1.76, suggesting that its stock price is 76% more volatile than the S&P 500.

Valuation & Earnings

This table compares P.A.M. Transportation Services and Celadon Group’s 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 22.49
Celadon Group $1.05 billion 0.16 $83.46 million $0.20 30.50

Celadon Group 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 Celadon Group, indicating that it is currently the more affordable of the two stocks.

Summary

Celadon Group beats P.A.M. Transportation Services on 9 of the 16 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.

Celadon Group Company Profile

Celadon Group, Inc. (Celadon) is a truckload freight transportation provider. The Company’s segments are asset-based, asset-light, and equipment leasing and services. Its services involve point-to-point shipping for its customers within the United States, between the United States and Mexico, and between the United States and Canada. The Company’s primary asset-based services include the United States domestic dry van and refrigerated; cross-border service between the United States and each of Mexico and Canada; intra-Mexico and intra-Canada service; contract service; regional and specialized short haul service, and rail intermodal service. The Company’s primary asset-light services include freight brokerage, warehousing, less-than truckload consolidation and supply chain logistics services.

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