Analyzing Heartland Express (HTLD) & P.A.M. Transportation Services (PTSI)

Heartland Express (NASDAQ: HTLD) and P.A.M. Transportation Services (NASDAQ:PTSI) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.

Dividends

Heartland Express pays an annual dividend of $0.08 per share and has a dividend yield of 0.3%. P.A.M. Transportation Services does not pay a dividend. Heartland Express pays out 13.3% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Heartland Express and P.A.M. Transportation Services’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Heartland Express $612.94 million 3.20 $56.38 million $0.60 39.18
P.A.M. Transportation Services $432.85 million 0.54 $11.10 million $1.26 29.19

Heartland Express has higher revenue and earnings than P.A.M. Transportation Services. P.A.M. Transportation Services is trading at a lower price-to-earnings ratio than Heartland Express, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

59.3% of Heartland Express shares are held by institutional investors. Comparatively, 24.0% of P.A.M. Transportation Services shares are held by institutional investors. 42.1% of Heartland Express shares are held by insiders. Comparatively, 62.0% of P.A.M. Transportation Services shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Heartland Express and P.A.M. Transportation Services, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Heartland Express 3 1 1 0 1.60
P.A.M. Transportation Services 0 1 0 0 2.00

Heartland Express presently has a consensus target price of $23.75, indicating a potential upside of 1.02%. P.A.M. Transportation Services has a consensus target price of $30.00, indicating a potential downside of 18.43%. Given Heartland Express’ higher probable upside, research analysts plainly believe Heartland Express is more favorable than P.A.M. Transportation Services.

Volatility & Risk

Heartland Express has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, P.A.M. Transportation Services has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500.

Profitability

This table compares Heartland Express and P.A.M. Transportation Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Heartland Express 8.54% 9.50% 6.54%
P.A.M. Transportation Services 1.85% 8.38% 2.16%

Summary

Heartland Express beats P.A.M. Transportation Services on 11 of the 16 factors compared between the two stocks.

About Heartland Express

Heartland Express, Inc. is a holding company. The Company is a short-to-medium haul truckload carrier. The Company focuses primarily on short- to medium-haul, asset-based dry van truckload services in regional markets near its terminals. The Company’s truckload services are primarily asset-based transportation services in the dry van truckload market, and it also offers truckload temperature-controlled transportation services and non-asset based brokerage services. All tractors are equipped with mobile communication systems. Its primary customers include retailers and manufacturers. It provides nationwide asset-based dry van truckload service for shippers from Washington to Florida and New England to California. The Company provides truckload services across the United States and parts of Canada. As of December 31, 2016, it had operated 20 terminal facilities throughout the contiguous United States in addition to its terminal and corporate headquarters in North Liberty, Iowa.

About P.A.M. Transportation Services

P.A.M. Transportation Services, Inc. is a holding company. The Company, through its subsidiaries, operates as a truckload transportation and logistics company. It operates in the motor carrier segment. It operates as a truckload dry van carrier transporting general commodities throughout the continental United States, as well as in certain Canadian provinces. It provides transportation services in Mexico under agreements with Mexican carriers. Its operations are classified into truckload services, or brokerage and logistics services. Truckload services include transportation services, in which it utilizes company owned trucks or independent operator owned trucks for the pickup and delivery of freight. The brokerage and logistics services consist of services, such as transportation scheduling, routing, mode selection, transloading and other services related to the transportation of freight, which may or may not involve the use of company owned or independent operator owned equipment.

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