Critical Analysis: Universal Logistics (NASDAQ:ULH) versus Armlogi (NASDAQ:BTOC)

Armlogi (NASDAQ:BTOC) and Universal Logistics (NASDAQ:ULH) are both small-cap transportation companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.

Earnings and Valuation

This table compares Armlogi and Universal Logistics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Armlogi	$190.41 million	0.12	-$15.35 million	($0.41)	-1.26
Universal Logistics	$1.85 billion	0.24	$129.91 million	($1.52)	-11.21

Universal Logistics has higher revenue and earnings than Armlogi. Universal Logistics is trading at a lower price-to-earnings ratio than Armlogi, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Armlogi has a beta of 2.51, indicating that its share price is 151% more volatile than the S&P 500. Comparatively, Universal Logistics has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.

Profitability

This table compares Armlogi and Universal Logistics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Armlogi	-8.72%	-62.11%	-10.30%
Universal Logistics	-2.46%	6.49%	2.26%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Armlogi and Universal Logistics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Armlogi	1	0	0	0	1.00
Universal Logistics	1	2	0	0	1.67

Universal Logistics has a consensus target price of $17.00, indicating a potential downside of 0.23%. Given Universal Logistics’ stronger consensus rating and higher possible upside, analysts clearly believe Universal Logistics is more favorable than Armlogi.

Insider and Institutional Ownership

25.5% of Universal Logistics shares are owned by institutional investors. 66.9% of Armlogi shares are owned by insiders. Comparatively, 73.6% of Universal Logistics shares are owned 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.

Summary

Universal Logistics beats Armlogi on 10 of the 13 factors compared between the two stocks.

About Armlogi

Armlogi Holding Corp. is a warehousing and logistics service provider which offers a comprehensive package of supply-chain solutions related to warehouse management and order fulfillment. Armlogi Holding Corp. is based in WALNUT, CA.

About Universal Logistics

Universal Logistics Holdings, Inc. provides transportation and logistics solutions in the United States, Mexico, Canada, and Colombia. The company offers truckload services, which include dry van, flatbed, heavy-haul, and refrigerated operations; domestic and international freight forwarding, and customs brokerage services. It transports various commodities comprising automotive parts, machinery, building materials, paper, food, consumer goods, furniture, steel, and other metals. The company also provides value-added services for individual customer requirements, including material handling, consolidation, sequencing, sub-assembly, cross-dock, kitting, repacking, warehousing, and returnable container management; and intermodal support services comprising short-to-medium distance delivery of steamship and rail truck containers between the port or railhead, and the customer. It serves automotive, steel, and other metals, retail and consumer goods, energy, and manufacturing industries, as well as other transportation companies who aggregate loads from various shippers. The company was formerly known as Universal Truckload Services, Inc. and changed its name to Universal Logistics Holdings, Inc. in April 2016. Universal Logistics Holdings, Inc. was founded in 1932 and is headquartered in Warren, Michigan.