Pamt (NASDAQ:PAMT) & Covenant Logistics Group (NASDAQ:CVLG) Critical Survey

Pamt (NASDAQ:PAMT) and Covenant Logistics Group (NASDAQ:CVLG) are both small-cap transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.

Volatility & Risk

Pamt has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500. Comparatively, Covenant Logistics Group has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Pamt and Covenant Logistics Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pamt	0	1	0	0	2.00
Covenant Logistics Group	0	0	2	0	3.00

Pamt currently has a consensus target price of $16.50, suggesting a potential upside of 21.06%. Covenant Logistics Group has a consensus target price of $35.25, suggesting a potential upside of 34.43%. Given Covenant Logistics Group’s stronger consensus rating and higher probable upside, analysts clearly believe Covenant Logistics Group is more favorable than Pamt.

Insider and Institutional Ownership

22.1% of Pamt shares are held by institutional investors. Comparatively, 83.7% of Covenant Logistics Group shares are held by institutional investors. 27.2% of Pamt shares are held by company insiders. Comparatively, 36.5% of Covenant Logistics Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Pamt and Covenant Logistics Group’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%
Covenant Logistics Group	3.17%	13.04%	5.56%

Valuation & Earnings

This table compares Pamt and Covenant Logistics Group”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	0.42	-$31.80 million	($1.46)	-9.34
Covenant Logistics Group	$1.13 billion	0.61	$35.92 million	$1.29	20.25

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

Summary

Covenant Logistics Group beats Pamt on 14 of the 14 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 Covenant Logistics Group

Covenant Logistics Group, Inc., together with its subsidiaries, provides transportation and logistics services in the United States. It operates through four segments: Expedited, Dedicated, Managed Freight, and Warehousing. The Expedited segment primarily provides truckload services with high service freight and delivery standards, such as 1,000 miles in 22 hours or 15-minute delivery windows. Its Dedicated segment provides customers with committed truckload capacity over contracted periods with the goal of three to five years in length using equipment either owned or leased by the company. The Managed Freight segment offers brokerage services, including logistics capacity by outsourcing the carriage of customers' freight to third parties; and transport management services, such as logistics services on a contractual basis to customers who prefer to outsource their logistics needs. Its Warehousing segment provides day-to-day warehouse management services to customers, as well as shuttle and switching services related to shuttling containers and trailers. The company also engages in used equipment sales and leasing business. It serves transportation companies, such as parcel freight forwarders, less-than-truckload carriers, and third-party logistics providers; and traditional truckload customers, including manufacturers, retailers, and food and beverage shippers. The company was formerly known as Covenant Transportation Group, Inc. and changed its name to Covenant Logistics Group, Inc. in July 2020. Covenant Logistics Group, Inc. was founded in 1986 and is based in Chattanooga, Tennessee.