Pangaea Logistics Solutions (PANL) versus FRP Holdings (FRPH) Critical Review

Pangaea Logistics Solutions (NASDAQ: PANL) and FRP Holdings (NASDAQ:FRPH) are both small-cap transportation companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.

Earnings & Valuation

This table compares Pangaea Logistics Solutions and FRP Holdings’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Pangaea Logistics Solutions $313.00 million 0.33 $30.99 million $0.08 29.63
FRP Holdings $32.09 million 14.34 $21.12 million $0.68 67.65

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

Volatility and Risk

Pangaea Logistics Solutions has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, FRP Holdings has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500.

Institutional and Insider Ownership

28.7% of Pangaea Logistics Solutions shares are held by institutional investors. Comparatively, 45.5% of FRP Holdings shares are held by institutional investors. 86.2% of Pangaea Logistics Solutions shares are held by company insiders. Comparatively, 23.3% of FRP Holdings shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Pangaea Logistics Solutions and FRP Holdings, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pangaea Logistics Solutions 0 0 2 0 3.00
FRP Holdings 0 0 0 0 N/A

Pangaea Logistics Solutions currently has a consensus target price of $57.35, indicating a potential upside of 2,319.83%. Given Pangaea Logistics Solutions’ higher probable upside, analysts clearly believe Pangaea Logistics Solutions is more favorable than FRP Holdings.

Profitability

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

Net Margins Return on Equity Return on Assets
Pangaea Logistics Solutions 0.88% 6.56% 3.14%
FRP Holdings 17.90% 3.40% 2.53%

Summary

Pangaea Logistics Solutions beats FRP Holdings on 7 of the 13 factors compared between the two stocks.

About Pangaea Logistics Solutions

Pangaea Logistics Solutions, Ltd. is a holding company. The Company is a provider of seaborne drybulk transportation services. The Company services a range of industrial customers who require the transportation of a range of drybulk cargoes, including grains, coal, iron ore, pig iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite and limestone. The Company addresses the transportation needs of its customers by undertaking a set of services and activities, including cargo loading, cargo discharge, vessel chartering, voyage planning and technical vessel management. The Company uses a mix of owned and chartered-in motor vessels to transport over 18.3 million deadweight tons (dwt) of cargo to approximately 100 ports across the world, averaging over 40 vessels in service. The Company’s owned fleet includes eight Panamax drybulk carriers, four Supramax drybulk carriers and two Handymax drybulk carriers. Its vessels include Nordic Orion, Nordic Odyssey and Bulk Trident.

About FRP Holdings

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.

Receive News & Ratings for Pangaea Logistics Solutions Ltd. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Pangaea Logistics Solutions Ltd. and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply