Analyzing Roadrunner Transportation Systems (OTCMKTS:RRTS) and PAMT (NASDAQ:PAMT)

Roadrunner Transportation Systems (OTCMKTS:RRTS) and PAMT (NASDAQ:PAMT) are both small-cap transportation companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.

Volatility & Risk

Roadrunner Transportation Systems has a beta of 3.92, indicating that its stock price is 292% more volatile than the S&P 500. Comparatively, PAMT has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

Valuation & Earnings

This table compares Roadrunner Transportation Systems and PAMT”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Roadrunner Transportation Systems	$32.72 million	2.94	-$2.09 million	N/A	N/A
PAMT	$714.65 million	0.38	-$31.80 million	($1.84)	-6.83

Roadrunner Transportation Systems has higher earnings, but lower revenue than PAMT.

Profitability

This table compares Roadrunner Transportation Systems and PAMT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Roadrunner Transportation Systems	N/A	N/A	N/A
PAMT	-5.85%	-5.65%	-2.23%

Insider and Institutional Ownership

0.0% of Roadrunner Transportation Systems shares are owned by institutional investors. Comparatively, 22.1% of PAMT shares are owned by institutional investors. 0.7% of Roadrunner Transportation Systems shares are owned by insiders. Comparatively, 74.1% of PAMT shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Roadrunner Transportation Systems and PAMT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roadrunner Transportation Systems	0	0	0	0	0.00
PAMT	0	1	0	0	2.00

PAMT has a consensus price target of $12.50, indicating a potential downside of 0.56%. Given PAMT’s stronger consensus rating and higher probable upside, analysts plainly believe PAMT is more favorable than Roadrunner Transportation Systems.

Summary

Roadrunner Transportation Systems beats PAMT on 6 of the 11 factors compared between the two stocks.

About Roadrunner Transportation Systems

Roadrunner Transportation Systems, Inc. provides asset-right transportation and asset-light logistics services. It operates through four segments: Ascent Transportation Management (Ascent TM), Ascent On-Demand (Ascent OD), Less-than-Truckload (LTL), and Truckload (TL). The company offers domestic freight management solutions, including asset-backed truckload brokerage, specialized/heavy haul, LTL shipment execution, LTL carrier rate negotiations, access to its transportation management system, and freight audit/payment. It also provides air and ground expedite services for the transportation of automotive and industrial parts, paper products, and steel, as well as frozen and refrigerated foods, including dairy, poultry and meat, and consumers products, such as foods and beverages. In addition, the company arranges the pickup and delivery of TL freight through its 30 TL service centers in the United States; offers dry van truckload, temperature-controlled truckload, and logistics and warehouse services; and provides pickup, consolidation, linehaul, deconsolidation, and delivery of LTL shipments in the United States and Canada through 27 LTL service centers and approximately 140 third-party delivery agents. Further, the company provides international air and ocean freight forwarding, customs brokerage, regulatory compliance, project and order management, and retail consolidation services. It operates through a network of independent brokerage agents, direct sales force, company brokers, and commissioned sales representatives. The company offers its services under the Roadrunner and Ascent Global Logistics brands. Roadrunner Transportation Systems, Inc. was incorporated in 2005 and is headquartered in Downers Grove, Illinois.

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.