Critical Analysis: ArcBest (NASDAQ:ARCB) and Pamt (NASDAQ:PAMT)

ArcBest (NASDAQ:ARCB) and Pamt (NASDAQ:PAMT) are both small-cap transportation companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, valuation, dividends, profitability, earnings and institutional ownership.

Volatility & Risk

ArcBest has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500. Comparatively, Pamt has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500.

Insider & Institutional Ownership

99.3% of ArcBest shares are held by institutional investors. Comparatively, 22.1% of Pamt shares are held by institutional investors. 1.7% of ArcBest shares are held by company insiders. Comparatively, 27.2% of Pamt shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares ArcBest and Pamt”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ArcBest	$4.18 billion	0.48	$173.96 million	$7.33	11.63
Pamt	$714.65 million	0.39	-$31.80 million	($1.46)	-8.86

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for ArcBest and Pamt, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ArcBest	1	7	4	0	2.25
Pamt	0	1	0	0	2.00

ArcBest currently has a consensus target price of $118.91, indicating a potential upside of 39.45%. Pamt has a consensus target price of $16.50, indicating a potential upside of 27.61%. Given ArcBest’s stronger consensus rating and higher possible upside, equities analysts clearly believe ArcBest is more favorable than Pamt.

Profitability

This table compares ArcBest and Pamt’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ArcBest	4.16%	11.79%	6.23%
Pamt	-4.45%	-2.58%	-1.07%

Summary

ArcBest beats Pamt on 13 of the 14 factors compared between the two stocks.

About ArcBest

ArcBest Corporation, an integrated logistics company, engages in the provision of ground, air, and ocean transportation solutions. It operates through two segments: Asset-Based and Asset-Light. The Asset-Based segment provides less-than-truckload (LTL) services, that transports general commodities, such as food, textiles, apparel, furniture, appliances, chemicals, non-bulk petroleum products, rubber, plastics, metal and metal products, wood, glass, automotive parts, machinery, and miscellaneous manufactured products. The segment also offers motor carrier freight transportation services to customers in Mexico through arrangements with trucking companies. The Asset-Light segment provides ground expedite services; third-party transportation brokerage services by sourcing various capacity solutions, including dry van over-the-road, temperature-controlled and refrigerated, flatbed, intermodal or container shipping, and specialized equipment; less-than- and full container load ocean transportation services; warehousing and distribution services; managed transportation services; and moving services to do-it-yourself' consumer, as well as provides final mile, time critical, product launch, retail logistics, supply chain optimization, and trade show shipping services. This segment also offers premium logistics services, such as deployment of specialized equipment to meet linehaul requirements; international freight transportation with air, ocean, and ground services; and engages in the final mile, time-critical, product launch, retail logistics, supply chain optimization, brokered LTL, and trade show shipping activities. The company was formerly known as Arkansas Best Corporation and changed its name to ArcBest Corporation in May 2014. ArcBest Corporation was founded in 1923 and is headquartered in Fort Smith, Arkansas.

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.