BEST (NYSE:BEST) and Patriot Transportation (NASDAQ:PATI) are both small-cap transportation companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.
Volatility & Risk
BEST has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500. Comparatively, Patriot Transportation has a beta of -0.12, indicating that its share price is 112% less volatile than the S&P 500.
Insider and Institutional Ownership
19.6% of BEST shares are held by institutional investors. Comparatively, 51.0% of Patriot Transportation shares are held by institutional investors. 41.7% of BEST shares are held by insiders. Comparatively, 11.5% of Patriot Transportation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares BEST and Patriot Transportation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and target prices for BEST and Patriot Transportation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
BEST currently has a consensus price target of $6.50, suggesting a potential upside of 48.40%. Given BEST’s higher probable upside, equities analysts plainly believe BEST is more favorable than Patriot Transportation.
Valuation and Earnings
This table compares BEST and Patriot Transportation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|BEST||$4.07 billion||0.40||-$73.88 million||($0.21)||-20.86|
|Patriot Transportation||$114.07 million||0.54||$5.11 million||N/A||N/A|
Patriot Transportation has lower revenue, but higher earnings than BEST.
Patriot Transportation beats BEST on 7 of the 12 factors compared between the two stocks.
BEST Company Profile
BEST Inc. operates as a smart supply chain service provider in the People’s Republic of China. Its proprietary technology platform enables its ecosystem participants to operate their businesses through various SaaS-based applications. The company applies its technologies to a range of applications, such as network and route optimization, swap bodies, sorting line automation, smart warehouses, and store management. It offers integrated services and solutions across the supply chain, including warehouse management, order fulfillment, express delivery, freight, and other services for multinational and corporate customers, as well as small and medium enterprises. The company also provides express delivery services; and door-to-door integrated cross-border supply chain services to and from China, including international express, less-than-truckload, fulfillment, reverse logistics, and freight forwarding through its network, and transportation and warehouse partners. In addition, it operates real-time bidding platform to source truckload capacity from independent transportation service providers and agents; and offers online merchandise sourcing and store management services for convenience stores, as well as B2C services, such as parcel pick-up and drop-off, and bill payment services. Further, BEST Inc. provides various value-added services, including customized financial services, including fleet and equipment finance leases; and centralized sourcing of products and services, such as bulk procurement of trucks and accessories. The company was founded in 2007 and is headquartered in Hangzhou, the People’s Republic of China.
Patriot Transportation Company Profile
Patriot Transportation Holding, Inc., through its subsidiary, Florida Rock & Tank Lines, Inc., engages in the transportation business. The company is involved in hauling petroleum related products, including gas and diesel fuel; and dry bulk commodities, such as cement, lime, and various industrial powder products, and liquid chemicals. It serves convenience stores and hypermarket accounts, fuel wholesalers, and oil companies, as well as industrial companies comprising cement and concrete accounts, and product distribution companies. As of September 30, 2018, the company operated a fleet of 415 tractors and 532 tank trailers, and 20 terminals and 6 satellite locations. Patriot Transportation Holding, Inc. is headquartered in Jacksonville, Florida.
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