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

Institutional & Insider Ownership

17.1% of Hennessy Capital Acquisition Corp. II shares are held by institutional investors. Comparatively, 45.5% of FRP Holdings shares are held by institutional investors. 20.0% of Hennessy Capital Acquisition Corp. II shares are held by insiders. Comparatively, 23.3% of FRP Holdings shares are held 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.

Valuation & Earnings

This table compares Hennessy Capital Acquisition Corp. II and FRP Holdings’ 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 0.77 $74.48 million N/A N/A
FRP Holdings $32.09 million 13.71 $21.12 million $0.68 64.71

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

Profitability

This table compares Hennessy Capital Acquisition Corp. II and FRP Holdings’ 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%
FRP Holdings 17.90% 3.40% 2.53%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Hennessy Capital Acquisition Corp. II and FRP Holdings, 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
FRP Holdings 0 0 0 0 N/A

Hennessy Capital Acquisition Corp. II presently has a consensus price target of $14.50, suggesting a potential upside of 5.22%. Given Hennessy Capital Acquisition Corp. II’s higher possible upside, research analysts plainly believe Hennessy Capital Acquisition Corp. II is more favorable than FRP Holdings.

Volatility and Risk

Hennessy Capital Acquisition Corp. II has a beta of -0.21, suggesting that its stock price is 121% less volatile than the S&P 500. Comparatively, FRP Holdings has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500.

Summary

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

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.

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.

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