Patriot Transportation (NASDAQ:PATI) and United Parcel Service (NYSE:UPS) are both transportation companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, valuation, earnings, dividends, institutional ownership, risk and analyst recommendations.
United Parcel Service pays an annual dividend of $3.64 per share and has a dividend yield of 3.4%. Patriot Transportation does not pay a dividend. United Parcel Service pays out 60.6% of its earnings in the form of a dividend. United Parcel Service has raised its dividend for 8 consecutive years.
This is a summary of recent ratings and recommmendations for Patriot Transportation and United Parcel Service, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|United Parcel Service||1||11||7||1||2.40|
United Parcel Service has a consensus target price of $125.65, suggesting a potential upside of 18.55%. Given United Parcel Service’s higher possible upside, analysts clearly believe United Parcel Service is more favorable than Patriot Transportation.
This table compares Patriot Transportation and United Parcel Service’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|United Parcel Service||7.68%||307.54%||13.34%|
Valuation and Earnings
This table compares Patriot Transportation and United Parcel Service’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Patriot Transportation||$112.17 million||0.62||$1.82 million||N/A||N/A|
|United Parcel Service||$65.87 billion||1.38||$4.91 billion||$6.01||17.64|
United Parcel Service has higher revenue and earnings than Patriot Transportation.
Institutional & Insider Ownership
49.1% of Patriot Transportation shares are owned by institutional investors. Comparatively, 53.9% of United Parcel Service shares are owned by institutional investors. 11.8% of Patriot Transportation shares are owned by company insiders. Comparatively, 0.6% of United Parcel Service shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Volatility and Risk
Patriot Transportation has a beta of -0.05, suggesting that its stock price is 105% less volatile than the S&P 500. Comparatively, United Parcel Service has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500.
United Parcel Service beats Patriot Transportation on 14 of the 16 factors compared between the two stocks.
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 primarily 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, 2017, the company operated a fleet of 451 tractors and 558 tank trailers, and 21 terminals and 7 satellite locations. Patriot Transportation Holding, Inc. is headquartered in Jacksonville, Florida.
United Parcel Service Company Profile
United Parcel Service, Inc. provides letter and package delivery, specialized transportation, logistics, and financial services. It operates through three segments: U.S. Domestic Package, International Package, and Supply Chain & Freight. The U.S. Domestic Package segment offers time-definite delivery of letters, documents, small packages, and palletized freight through air and ground services in the United States. The International Package segment provides guaranteed day and time-definite international shipping services in Europe, the Asia Pacific, Canada and Latin America, the Indian sub-continent, the Middle East, and Africa. This segment offers guaranteed time-definite express options, including Express Plus, Express, and Express Saver. The Supply Chain & Freight segment provides international air and ocean freight forwarding, customs and truckload freight brokerage, distribution and post-sales, and mail and consulting services in approximately 220 countries and territories; and less-than-truckload and truckload services to customers in North America. The company also offers shipping, visibility, and billing technologies; and insurance, financing, and payment services. It operates a fleet of approximately 119,000 package cars, vans, tractors, and motorcycles; and owns 45,000 containers that are used to transport cargo in its aircraft. United Parcel Service, Inc. was founded in 1907 and is headquartered in Atlanta, Georgia.
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