EuroDry (NASDAQ:EDRY) versus Pangaea Logistics Solutions (NASDAQ:PANL) Critical Contrast

EuroDry (NASDAQ:EDRY) and Pangaea Logistics Solutions (NASDAQ:PANL) are both small-cap transportation companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
EuroDry	-0.55%	-0.88%	-0.43%
Pangaea Logistics Solutions	5.10%	5.71%	2.89%

Volatility & Risk

EuroDry has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, Pangaea Logistics Solutions has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Institutional and Insider Ownership

2.4% of EuroDry shares are owned by institutional investors. Comparatively, 60.2% of Pangaea Logistics Solutions shares are owned by institutional investors. 51.4% of EuroDry shares are owned by insiders. Comparatively, 16.7% 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 stock is poised for long-term growth.

Valuation and Earnings

This table compares EuroDry and Pangaea Logistics Solutions”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EuroDry	$52.26 million	1.30	-$4.26 million	($0.13)	-180.31
Pangaea Logistics Solutions	$632.04 million	0.83	$19.37 million	$0.55	14.58

Pangaea Logistics Solutions has higher revenue and earnings than EuroDry. EuroDry 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 Ratings

This is a summary of recent recommendations for EuroDry and Pangaea Logistics Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EuroDry	1	1	1	0	2.00
Pangaea Logistics Solutions	0	1	2	0	2.67

EuroDry presently has a consensus target price of $23.50, suggesting a potential upside of 0.26%. Pangaea Logistics Solutions has a consensus target price of $9.00, suggesting a potential upside of 12.22%. Given Pangaea Logistics Solutions’ stronger consensus rating and higher probable upside, analysts clearly believe Pangaea Logistics Solutions is more favorable than EuroDry.

Summary

Pangaea Logistics Solutions beats EuroDry on 12 of the 14 factors compared between the two stocks.

About EuroDry

EuroDry Ltd., through its subsidiaries, provides ocean-going transportation services worldwide. It owns and operates a fleet of drybulk carriers that transport major bulks, such as iron ore, coal, and grains; and minor bulks, including bauxite, phosphate, and fertilizers. The company fleet consisted of 13 drybulk carriers comprising five Panamax drybulk carriers, two Kamsarmax, five Ultramax drybulk carriers, and one Supramax drybulk carrier with a total cargo carrying capacity of 918,502 dwt. EuroDry Ltd. was incorporated in 2018 and is based in Marousi, Greece.

About Pangaea Logistics Solutions

Pangaea Logistics Solutions, Ltd., together with its subsidiaries, provides seaborne dry bulk logistics and transportation services to industrial customers worldwide. It offers various dry bulk cargoes, such as grains, coal, iron ore, pig iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite, and limestone. The company's ocean logistics services comprise cargo loading, cargo discharge, vessel chartering, voyage planning, and technical vessel management. It owns and operates a fleet of vessels. The company was founded in 1996 and is headquartered in Newport, Rhode Island.