Daseke (NASDAQ: DSKE) and Despegar.com (NYSE:DESP) are both small-cap transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.
Institutional and Insider Ownership
42.2% of Daseke shares are held by institutional investors. Comparatively, 74.0% of Despegar.com shares are held by institutional investors. 28.6% of Daseke shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This is a summary of current ratings and price targets for Daseke and Despegar.com, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Daseke currently has a consensus target price of $14.63, suggesting a potential upside of 48.78%. Despegar.com has a consensus target price of $36.71, suggesting a potential upside of 66.73%. Given Despegar.com’s higher probable upside, analysts clearly believe Despegar.com is more favorable than Daseke.
Valuation and Earnings
This table compares Daseke and Despegar.com’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Daseke||$846.30 million||0.66||$26.99 million||($0.60)||-16.38|
|Despegar.com||$523.94 million||2.82||$42.36 million||$0.69||31.91|
Despegar.com has lower revenue, but higher earnings than Daseke. Daseke is trading at a lower price-to-earnings ratio than Despegar.com, indicating that it is currently the more affordable of the two stocks.
This table compares Daseke and Despegar.com’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Despegar.com beats Daseke on 8 of the 12 factors compared between the two stocks.
Daseke Company Profile
Daseke, Inc. provides transportation and logistics solutions with a focus on flatbed and specialized freight in North America. It operates through Flatbed Solutions and Specialized Solutions segments. The company transports heavy haul freight, defense and commercial arms, ammunition and explosives, radioactive cargo and hazardous materials, and commercial sheet glass, as well as offers 10-wheel drive-away services. It also offers industrial warehousing and distribution services, including export packaging and free trade zone access in Savannah, Georgia; and over-dimensional cargo solution. In addition, Daseke, Inc. operates as an open deck carrier for power sports industry. The company serves automotive, port intermodal, power generation, and steel and building materials markets. As of December 31, 2017, the company operated 3,218 company-owned tractors, and 11,237 trailers, as well as 2,056 tractors owned and operated by independent contractors. Daseke, Inc. is headquartered in Addison, Texas.
Despegar.com Company Profile
Despegar.com, Corp., an online travel company, provides a range of travel and travel-related products through its Websites and mobile applications in Latin America. It operates through two segments, Air; and Packages, Hotels and Other Travel Products. The company offers airline tickets, packages, hotels, and other travel-related products under the Despegar and Decolar brands, which enable consumers to find, compare, plan, and purchase travel products through its marketplace. It provides a technology platform for its travel suppliers to manage and distribute their products. The company was founded in 1999 and is based in Buenos Aires, Argentina.
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