Pamt (NASDAQ:PAMT) and Old Dominion Freight Line (NASDAQ:ODFL) Critical Review

Pamt (NASDAQ:PAMT) and Old Dominion Freight Line (NASDAQ:ODFL) are both transportation companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, valuation, institutional ownership and earnings.

Risk & Volatility

Pamt has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500. Comparatively, Old Dominion Freight Line has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500.

Valuation and Earnings

This table compares Pamt and Old Dominion Freight Line”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pamt	$714.65 million	0.39	-$31.80 million	($1.46)	-8.86
Old Dominion Freight Line	$5.81 billion	6.62	$1.19 billion	$5.48	32.92

Old Dominion Freight Line has higher revenue and earnings than Pamt. Pamt is trading at a lower price-to-earnings ratio than Old Dominion Freight Line, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Pamt and Old Dominion Freight Line’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pamt	-4.45%	-2.58%	-1.07%
Old Dominion Freight Line	20.40%	28.02%	21.65%

Insider and Institutional Ownership

22.1% of Pamt shares are held by institutional investors. Comparatively, 77.8% of Old Dominion Freight Line shares are held by institutional investors. 27.2% of Pamt shares are held by company insiders. Comparatively, 9.9% of Old Dominion Freight Line shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Pamt and Old Dominion Freight Line, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pamt	0	1	0	0	2.00
Old Dominion Freight Line	1	16	3	1	2.19

Pamt presently has a consensus target price of $16.50, indicating a potential upside of 27.61%. Old Dominion Freight Line has a consensus target price of $203.33, indicating a potential upside of 12.71%. Given Pamt’s higher probable upside, analysts clearly believe Pamt is more favorable than Old Dominion Freight Line.

Summary

Old Dominion Freight Line beats Pamt on 12 of the 15 factors compared between the two stocks.

About Pamt

PAMT Corp. is a holding company, which engages in the provision of truckload and logistics services through its subsidiaries. Its freight consists primarily of automotive parts, expedited goods, consumer goods, such as general retail store merchandise, and manufactured goods, such as heating and air conditioning units. The company was founded in June 1986 and is headquartered in Tontitown, AR.

About Old Dominion Freight Line

Old Dominion Freight Line, Inc. operates as a less-than-truckload motor carrier in the United States and North America. The company offers regional, inter-regional, and national less-than-truckload services, as well as expedited transportation. It also provides various value-added services, including container drayage, truckload brokerage, and supply chain consulting. As of December 31, 2023, it owned and operated 10,791 tractors, 31,233 linehaul trailers, and 15,181 pickup and delivery trailers; 46 fleet maintenance centers; and 257 service centers. Old Dominion Freight Line, Inc. was founded in 1934 and is headquartered in Thomasville, North Carolina.